Tamarisk Company’s income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $848,000 Operating expenses (excluding depreciation) $622,000 Depreciation expense 59,000 Loss on sale of equipment 25,000 706,000 Income before income taxes 142,000 Income tax expense 40,000 Net income $102,000 Tamarisk’s balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $38,000 $53,000 Accounts payable 41,000 31,000 Income taxes payable 3,800 8,500 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the indirect method
Tamarisk Company’s income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $848,000 Operating expenses (excluding depreciation) $622,000 Depreciation expense 59,000 Loss on sale of equipment 25,000 706,000 Income before income taxes 142,000 Income tax expense 40,000 Net income $102,000 Tamarisk’s balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $38,000 $53,000 Accounts payable 41,000 31,000 Income taxes payable 3,800 8,500 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the indirect method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Tamarisk Company’s income statement for the year ended December 31, 2020, contained the following condensed information.
| Service revenue |
$848,000
|
|||
| Operating expenses (excluding |
$622,000
|
|||
| Depreciation expense |
59,000
|
|||
| Loss on sale of equipment |
25,000
|
706,000
|
||
| Income before income taxes |
142,000
|
|||
| Income tax expense |
40,000
|
|||
| Net income |
$102,000
|
Tamarisk’s
|
2020
|
2019
|
|||
| $38,000 | $53,000 | |||
| Accounts payable | 41,000 | 31,000 | ||
| Income taxes payable | 3,800 | 8,500 |
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of
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