Norman Companys income statement for the year ended December 31, 2012, contained the following condensed information. Service
Question:
Norman Company’s income statement for the year ended December 31, 2012, contained the following condensed information.
Service revenue $840,000
Operating expenses (excluding depreciation) $624,000
Depreciation expense 60,000
Loss on sale of equipment 26,000 710,000
Income before income taxes 130,000
Income tax expense 40,000
Net income $ 90,000
Norman’s balance sheet contained the following comparative data at December 31.
(Accounts payable pertains to operating expenses.)
Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.
Step by Step Answer: