PREPARE THE OPERATING ACTIVITIES SECTION LF THE STATEMENT OF CASHFLOWS USING INDIRECT METHOD

Splish Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $834,000 Operating expenses (excluding depreciation) $621,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 707,000 Income before income taxes 127,000 Income tax expense 41,000 Net income $86,000 D Splish's balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $39,000 $56,000 Accounts payable 40,000 30,000 Income taxes payable 4,200 8,700 (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 eg -15,000 or in parenthesis e.g. (15,000)) SPLISH COMPANY WILT Cilic amprentista, Adjustments to reconcile net income to SPLISH COMPANY Statement of Cash Flows (Partial) $