Question

Exercise 23-6 Krauss Company's income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $840,000 Operating expenses (exduding depreciation) $624,000 60,000 Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income 26,000 710,000 130,000 40,000 $90,000 Krauss's balance sheet contained the following comparative data at December 31. 2017 2016 Accounts receivable Accounts payable Income taxes payable 37,000 41,000 4,000 $54,000 31,000 8,500 Accounts payable pertains to operating expenses.)

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Answer 1

Net income for the year					90000
Adjustment required
Depreciation expenses				60000
Loss on sale of equipment				26000
Decrease in Accounts recevable				17000
Increase in Accounts payable				10000
Decrease n Income tax payable				-4500
					108500
Net cashflows from Operating activities					198500