Instructions

Prepare the operating activities section of the statement of cash flows using the indirect method.

Service revenue $778,000 Operating expenses (excluding depreciation) $499,000 Depreciation expense 66,000 Unrealized loss on FV-NI investments 4,000 Loss on disposal of equipment 14,000 Income before income tax 583,000 195,000 _58,000 $137,000 Income tax expense Net income There were no purchases or sales of trading (FV-NI) investments during 2017. Malouin's statement of financial position included the following comparative data at December 31: FV-NI investments Accounts receivable 2017 $22,000 35,000 44,000 2016 $26,000 54,000 31,000 Accounts payable Income tax payable 6,000 8,500