Sage Company's income statement for the year ended December 31, 2020, contained the following condensed information.Service revenue$848,000Operating expenses (excluding depreciation)Depreciation expenseLoss on sale of equipmentIncome before income taxes$628,00061,00026,000715,000133,000Income tax expense40,000$93.000Net incomeSage's balance sheet contained the following comparative data at December 31.20202019Accounts receivable$37.00$52,000Accounts payable39.00032,000Income taxes payable4,0008.400(Accounts payable pertains to operating expenses.)Prepare the operating activities section of the statement of cash flows using the direct method.SAGE COMPANYStatement of Cash Flows (Partial)24%24>

Cash payment for operating expenses=Opening payables+Operating expenses-Closing…

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.

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

Section: Chapter Questions

Problem 1Q

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