Question
The controller of Nebula Corporation has provided you with the following information: Nebula Corporation Income Statement For the Year Ended December 31, 2017 Net sales
The controller of Nebula Corporation has provided you with the following information:
Nebula Corporation Income Statement For the Year Ended December 31, 2017
Net sales 620,000 Operating expenses 410,000 Income from operations 210,000 Other revenues and expenses Gain on sale of equipment 30,000 Interest expense 8,000 22,000 Income before income taxes 232,000 Income taxes 92,800 Net income 139,200
Nebula Corporation Comparative Account Information Relating to Operations For the Year Ended December 31, 2017 2014 2013 Accounts receivable 56,000 40,000 Prepaid insurance 5,000 6,000 Accounts payable 59,000 47,000 Interest payable 600 1,500 Income taxes payable 4,200 6,000 Unearned revenue 20,000 14,000
Instructions 1. Prepare a statement of cash flows (for operating activities only) for the year ended December 31, 2017, using the direct method. 2. Prepare a statement of cash flows (for operating activities only) for the year ended December 31, 2017 using the indirect method.
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