Question
Sheridan Companys income statement contained the condensed information below. Sheridan Company Income Statement For the Year Ended December 31, 2022 Service revenue $582,000 Operating expenses,
Sheridan Companys income statement contained the condensed information below.
Sheridan Company Income Statement For the Year Ended December 31, 2022 | ||||
---|---|---|---|---|
Service revenue | $582,000 | |||
Operating expenses, excluding depreciation | $368,400 | |||
Depreciation expense | 33,000 | |||
Loss on disposal of plant assets | 9,600 | 411,000 | ||
Income before income taxes | 171,000 | |||
Income tax expense | 33,600 | |||
Net income | $137,400 |
Sheridan Companys balance sheets contained the following comparative data at December 31.
2022 | 2021 | |||
---|---|---|---|---|
Accounts receivable | $42,000 | $36,000 | ||
Accounts payable | 24,600 | 19,200 | ||
Income taxes payable | 7,800 | 4,200 |
Accounts payable pertain 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 e.g. -15,000 or in parenthesis e.g. (15,000).)
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