Culver Company’s income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $843,000 Operating expenses (excluding depreciation) $626,000 Depreciation expense 61,000 Loss on sale of equipment 26,000 713,000 Income before income taxes 130,000 Income tax expense 41,000 Net income $89,000 Culver’s balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $38,000 $55,000 Accounts payable 39,000 32,000 Income taxes payable 4,200 8,700 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. CULVER COMPANY Statement of Cash Flows (Partial) choose the accounting period select an opening section name select an item $enter a dollar amount select an item $enter a dollar amount select an item enter a dollar amount enter a subtotal of the two previous amounts select a closing section name $enter a total amount for the section
Culver Company’s income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $843,000 Operating expenses (excluding depreciation) $626,000 Depreciation expense 61,000 Loss on sale of equipment 26,000 713,000 Income before income taxes 130,000 Income tax expense 41,000 Net income $89,000 Culver’s balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $38,000 $55,000 Accounts payable 39,000 32,000 Income taxes payable 4,200 8,700 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. CULVER COMPANY Statement of Cash Flows (Partial) choose the accounting period select an opening section name select an item $enter a dollar amount select an item $enter a dollar amount select an item enter a dollar amount enter a subtotal of the two previous amounts select a closing section name $enter a total amount for the section
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
Exercise 23-05
Culver Company’s income statement for the year ended December 31, 2020, contained the following condensed information.
Culver’sbalance sheet contained the following comparative data at December 31.
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement ofcash flows using the direct method.
|
Service revenue
|
$843,000
|
|||
|---|---|---|---|---|
|
Operating expenses (excluding
|
$626,000
|
|||
|
Depreciation expense
|
61,000
|
|||
|
Loss on sale of equipment
|
26,000
|
713,000
|
||
|
Income before income taxes
|
130,000
|
|||
|
Income tax expense
|
41,000
|
|||
|
Net income
|
$89,000
|
Culver’s
|
2020
|
2019
|
|||
|---|---|---|---|---|
|
|
$38,000 | $55,000 | ||
|
Accounts payable
|
39,000 | 32,000 | ||
|
Income taxes payable
|
4,200 | 8,700 |
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of
|
CULVER COMPANY
Statement of Cash Flows (Partial) choose the accounting period |
||
|---|---|---|
|
select an opening section name
|
||
|
select an item
|
$enter a dollar amount
|
|
|
select an item
|
$enter a dollar amount
|
|
|
select an item
|
enter a dollar amount
|
|
|
enter a subtotal of the two previous amounts
|
||
|
select a closing section name
|
$enter a total amount for the section
|
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