Question 1 (4 marks) income statement for the year ended December31,2017, contained the following info

Net income Depreciation expense Loss on sale of Building Income tax expense

200,000 40,000 60,000 40,000

Saras balance sheet contained the following comparative data at December 31.

Accounts receivable Inventory Accounts payable Income taxes payable Bonds interest payable

2017 34,000 4,600 26,000 12,000 2,400

2016 30,000 4,900 21,000 10,000 2,200

Required: Prepare the operating activities section of the statement of cash flows.

Question 2 (4 marks)

Presented below are certain account balances of HARRISON CORPORATION

Rental revenue $ 5,200 Sales discounts $ 6,240

Interest expense 10,160 Selling expenses 79,520

Sales 512,000 The Corporations tax rate is 35%

Dividend revenue 56,800 Cost of goods sold 147,520

Sales returns 9,920 Administrative expenses 66,000

Additional information:

The company suffered an unusual and infrequent net of tax loss of $47,596 from earthquake damage.

2.

3.

Required Prepare a multiple-step income statement for the year ended December 31, 2012.