Need help with this statement of cash flows problem Pina Company\'s income state

Question

Need help with this statement of cash flows problem

Pina Company's income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income $834,000 $621,000 60,000 26,000 707,000 127,000 41,000 $86,000 Pina's balance sheet contained the following comparative data at December 3 2017 2016 Accounts receivable Accounts payable Income taxes payable $39,000 40,000 4,200 $56,000 30,000 8,700 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method

Explanation / Answer

PINA COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 $ $ Cash flows from operating activities: Cash received from customers         851,000 Less Cash payments for operating Expenses            611,000 Less Cash payments for income taxes              45,500         656,500 Net cash flow from operating activities         194,500 Cash received from customers Accounts Receivables Begning              56,000 Add Sales            834,000 Less Accounts Receivables End              39,000 Cash received            851,000 Less Cash payments for operating Expenses Accounts Payable Begning              30,000 Add Opeating expeses            621,000 Less Accounts payable End              40,000 Cash Paid            611,000 Less Cash payments for income taxes Income tax payable begning                 8,700 Add Income tax expenses              41,000 Less Income tax payable at the end                 4,200 Tax paid              45,500

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---