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Exercise 23-6 Sage Companys income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $848,000 Operating expenses (excluding depreciation)
Exercise 23-6
Sage Companys income statement for the year ended December 31, 2017, contained the following condensed information.
Service revenue | $848,000 | |||
Operating expenses (excluding depreciation) | $618,000 | |||
Depreciation expense | 59,000 | |||
Loss on sale of equipment | 25,000 | 702,000 | ||
Income before income taxes | 146,000 | |||
Income tax expense | 40,000 | |||
Net income | $106,000 |
Sages balance sheet contained the following comparative data at December 31.
2017 | 2016 | |||
Accounts receivable | $39,000 | $57,000 | ||
Accounts payable | 39,000 | 32,000 | ||
Income taxes payable | 4,200 | 8,900 |
(Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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