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Teal Companys income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $845,000 Operating expenses (excluding depreciation) $620,000 Depreciation
Teal Companys income statement for the year ended December 31, 2017, contained the following condensed information.
Service revenue | $845,000 | |||
Operating expenses (excluding depreciation) | $620,000 | |||
Depreciation expense | 61,000 | |||
Loss on sale of equipment | 26,000 | 707,000 | ||
Income before income taxes | 138,000 | |||
Income tax expense | 41,000 | |||
Net income | $97,000 |
Teals balance sheet contained the following comparative data at December 31.
2017 | 2016 | |||
Accounts receivable | $39,000 | $56,000 | ||
Accounts payable | 39,000 | 33,000 | ||
Income taxes payable | 4,100 | 8,400 |
(Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method.
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