Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pronghorn Corp's income statement for the year ended December 31, 2020, had the following condensed information: Sales revenue $759,600 Operating expenses (excluding depreciation) $486,000 Depreciation
Pronghorn Corp's income statement for the year ended December 31, 2020, had the following condensed information: Sales revenue $759,600 Operating expenses (excluding depreciation) $486,000 Depreciation expense 57,000 Unrealized loss on FV-NI investments 5,100 Loss on disposal of equipment 11,500 559,600 Income before income taxes 200,000 Income tax expense 54,000 Net income $146,000 There were no purchases or sales of trading (FV-NI) investments during 2020. Pronghorn's statement of financial position included the following comparative data at December 31: 2020 2019 FV-NI investments $21,000 $26,100 Accounts receivable 35,400 55,100 Accounts payable 46,100 32,100 Income tax payable 8,000 9,200 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 parenthesise.g. (15,000).) Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-signe.g.-15,000 or in parenthesise.g. (15,000).) Pronghorn Corp. Partial Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to net cash provided by operating activities: $ > > $ $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started