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The income statement for Scott Construction for 2014 is as follows: Scott Construction Income Statement For the Year Ended December 31, 2014 Sales $1,030,000 Cost
The income statement for Scott Construction for 2014 is as follows:
Scott Construction
Income Statement
For the Year Ended December 31, 2014
Sales $1,030,000
Cost of goods sold 630,000
Gross profit 400,000
Less:
Depreciation expense $65,000
Amortization of patent 7,500
Wages expense 59,000
Insurance expense 11,000 142,500
Income before taxes 257500
Less income taxes 91,000
Net income $ 166,500
Also,
- Accounts receivable decreased by $25,000 during the year.
- Accounts payable increased by $7,000.
- Wages payable had a balance of $0 at the beginning of the year; at the end of the year, the balance was $6,000
- Prepaid insurance increased by $10,000 during the year.
Prepare the operating activities section of the statement of cash flows for 2014 for Scott Construction using the indirect method.
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