Question

Vaughn Company's income statement for the year ended December 31, 2017, contained the following condensed information Service revenue $847,000 Operating expenses (excluding depreciation) $629,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 715,000 Income before income taxes 132,000 Income tax expense 41,000 $91,000 Net income Vaughn's balance sheet contained the following comparative data at December 31 2017 2016 Accounts receivable $35,000 $53,000 Accounts payable 42,000 30,000 Income taxes payable 4,100 8,800 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decreas VAUGHN COMPANY Statement of Cash Flows (Partial) Adjustments to reconcile net income to $ $

Answer 1

Answer Vaughn Company Focome Statement of cash flows (partial) for tho year ênded Recembes 31, 201 cash flos from operakiry Aetivtiest Net Tncome Adjutments to econ tile ietnene to aebuiti let cash floAfrom operoting es preciaban penses $ 60000 Be 426000 Loss Sale of euipment pecrease n ALeOvnts receivables 3Stoo-5300D) 12000 paipfle 3c Tncrease Aceaunts pecrease neme a ) 300 202,300 Net cash flowfrom operabing Activikies