Sheffield Company’s income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $837,000 Operating expenses (excluding depreciation) $621,000 Depreciation expense 60,000 Loss on sale of equipment 25,000 706,000 Income before income taxes 131,000 Income tax expense 40,000 Net income $91,000 Sheffield’s balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $36,000 $55,000 Accounts payable 42,000 31,000 Income taxes payable 4,000 8,200 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SHEFFIELD COMPANY Statement of Cash Flows (Partial) $ Adjustments to reconcile net income to $ $

Sheffield Company’s income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $837,000 Operating expenses (excluding depreciation) $621,000 Depreciation expense 60,000 Loss on sale of equipment 25,000 706,000 Income before income taxes 131,000 Income tax expense 40,000 Net income $91,000 Sheffield’s balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $36,000 $55,000 Accounts payable 42,000 31,000 Income taxes payable 4,000 8,200 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SHEFFIELD COMPANY Statement of Cash Flows (Partial) $ Adjustments to reconcile net income to $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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19.

Sheffield Company’s income statement for the year ended December 31, 2020, contained the following condensed information.

Service revenue		$837,000
Operating expenses (excluding depreciation)	$621,000
Depreciation expense	60,000
Loss on sale of equipment	25,000	706,000
Income before income taxes		131,000
Income tax expense		40,000
Net income		$91,000

Sheffield’s balance sheet contained the following comparative data at December 31.

	2020	2019
Accounts receivable	$36,000	$55,000
Accounts payable	42,000	31,000
Income taxes payable	4,000	8,200

(Accounts payable pertains to operating expenses.)

Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

SHEFFIELD COMPANY Statement of Cash Flows (Partial)

		$
Adjustments to reconcile net income to

	$





		$

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