Hand writing solutions assignment

Question 1: Podracer Productions provides the following income statement for the year ended December 31, 2017. Income Statement Sales $1,530,600 Interest revenue 17,250 Cost of goods sold (895,400) General expenses (255,400) Depreciation expense (23,500) Salaries expense (114,300) Interest expense (12,500) Income tax expense 85,500) Loss on sale of equipment (9.500) Net income $ 151.750 In addition, Podracer provides the following balance sheet information Dec 31. 2017 Dec. 31, 2016 Accounts Receivable $250,400 $225,400 Interest Receivable 2,100 2,250 Inventory 74,300 59,550 Prepaid General Expenses 17,600 14,000 Account Payable 39,500 46,300 Accrued General Expenses 19,500 21,750 Interest Payable 900 1.100 Income Tax Payable 11,500 9,750 Salaries Payable 9,850 5.400 Prepare the operating Activities section of the statement of cash flows using the direct method