Sage Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $848,000 Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment $628,000 61,000 26,000 715,000 Income before income taxes 133,000 Income tax expense 40,000 Net income $93,000 Sage's balance sheet contained the following comparative data at December 31. 2020 $37,000 2019 $52,000 Accounts receivable Accounts payable 39,000 32,000 Income taxes payable 4,000 8,400 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sage Company's income statement for the year ended December 31, 2020, contained the following condensed information.
Service revenue
$848,000
Operating expenses (excluding depreciation)
Depreciation expense
Loss on sale of equipment
Income before income taxes
$628,000
61,000
26,000
715,000
133,000
Income tax expense
40,000
$93.000
Net income
Sage's balance sheet contained the following comparative data at December 31.
2020
2019
Accounts receivable
$37.00
$52,000
Accounts payable
39.000
32,000
Income taxes payable
4,000
8.400
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of cash flows using the direct method.
SAGE COMPANY
Statement of Cash Flows (Partial)
24
%24
>
Transcribed Image Text:Sage Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $848,000 Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment Income before income taxes $628,000 61,000 26,000 715,000 133,000 Income tax expense 40,000 $93.000 Net income Sage's balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $37.00 $52,000 Accounts payable 39.000 32,000 Income taxes payable 4,000 8.400 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. SAGE COMPANY Statement of Cash Flows (Partial) 24 %24 >
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