Pearl 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 $624,000 Accounts receivable Accounts payable Income taxes payable 59,000 25,000 2017 $841,000. $35,000 41,000 3,800 708,000 133,000 Pearl's balance sheet contained the following comparative data at December 31. 40,000 $93,000 2016 $53,000 31,000 8,000 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. PEARL COMPANY Statement of Cash Flows (Partial) + # $

Pearl 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 $624,000 Accounts receivable Accounts payable Income taxes payable 59,000 25,000 2017 $841,000. $35,000 41,000 3,800 708,000 133,000 Pearl's balance sheet contained the following comparative data at December 31. 40,000 $93,000 2016 $53,000 31,000 8,000 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. PEARL COMPANY Statement of Cash Flows (Partial) + # $

Financial Accounting: The Impact on Decision Makers

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ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.3DC

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Question

Please do not give solution in image format thanku

Pearl 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
$624,000
Accounts receivable
Accounts payable
Income taxes payable
59,000
25,000
2017
$841,000.
$35,000
41,000
3,800
708,000
133,000
Pearl's balance sheet contained the following comparative data at December 31.
40,000
$93,000
2016
$53,000
31,000
8,000
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of cash flows using the direct method.
PEARL COMPANY
Statement of Cash Flows (Partial)
+
+
+
$
$
$

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