The income statement of Price Ltd for the year ended 31 December 2020, reported the following condensed
Question:
The income statement of Price Ltd for the year ended 31 December 2020, reported the following condensed information:
Revenue from fees $600,000O
perating expenses 360,000
Income from operations 240,000
Income tax expense 60,000
Net income $180,000
Price's balance sheet contained the following comparative data at December 31:
2020 2019
Accounts receivable $50,000 $45,000
Accounts payable 35,000 41,000
Income taxes payable 6,000 3,000
Price has no depreciable assets. Accounts payable pertains to operating expenses.
Required:
(a) Calculate:Cash receipts from customers. Cash payments for operating expenses.
(b) Prepare the operating activities section of the statement of cash flows for 2020.
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,