Lily Company's income statement contained the following condensed information. LILY COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation $624,200 Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income 2022 2021 Accounts receivable $75,500 $61,000 Accounts payable 41,000 Income taxes payable 12,200 28,300 55,500 6,700 25,000 $969,000 Lily's balance sheets contained the comparative data at December 31, shown below. 704,700 264,300 39,700 $224,600 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15.0001)
Lily Company's income statement contained the following condensed information. LILY COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation $624,200 Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income 2022 2021 Accounts receivable $75,500 $61,000 Accounts payable 41,000 Income taxes payable 12,200 28,300 55,500 6,700 25,000 $969,000 Lily's balance sheets contained the comparative data at December 31, shown below. 704,700 264,300 39,700 $224,600 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15.0001)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Lily Company's income statement contained the following condensed information.
LILY COMPANY
Income Statement
For the Year Ended December 31, 2022
Service revenue
Operating expenses, excluding depreciation
Depreciation expense
Loss on disposal of plant assets
Income before income taxes
Income tax expense
Net income
Accounts receivable
Accounts payable
Income taxes payable
2022
$75,500
41,000
12,200
2021
cash payments:
Lily's balance sheets contained the comparative data at December 31, shown below.
$61,000
28,300
6,700
$624,200
55,500
25,000
$
$969,000
704,700
264,300
39,700
$224,600
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow
with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).)
LILY COMPANY
Partial Statement of Cash Flows
$
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