Novak Corp.s income statement contained the following condensed information. Novak Corp. Income Statement For the Year Ended December 31, 2020 Service revenue $971,100 Operating expenses,
Novak Corp.s income statement contained the following condensed information.
Novak Corp. Income Statement For the Year Ended December 31, 2020 | ||||
Service revenue | $971,100 | |||
Operating expenses, excluding depreciation | $624,100 | |||
Depreciation expense | 54,000 | |||
Loss on disposal of plant assets | 24,900 | 703,000 | ||
Income before income taxes | 268,100 | |||
Income tax expense | 40,000 | |||
Net income | $228,100 |
Novaks balance sheets contained the comparative data at December 31, shown below.
2020 | 2019 | |||
Accounts receivable | $75,200 | $60,400 | ||
Accounts payable | 40,000 | 28,400 | ||
Income taxes payable | 12,700 | 7,700 |
Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Novak Corp. Partial Statement of Cash Flows For the Year Ended December 31, 2020 V Cash Flows from Operating Activities Net Income $ 228100 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 54000 Loss on disposal of Plant Assets 24900 Increase in Accounts Payable Increase in Accounts Receivable V Increase in Income Taxes Payable V Net Cash Provided by Operating Activities $
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