Norman companys income statement for the year ended

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Norman Company's income statement for the year ended December 31, 2012, contained the following condensed information.

Service revenue


$849,940
Operating expenses (excluding depreciation)
$629,560

Depreciation expense
58,390

Loss on sale of equipment
25,820
713,770
Income before income taxes


136,170
Income tax expense


38,270
Net income


$97,900

Norman's balance sheet contained the following comparative data at December 31.



2012
2011
Accounts receivable
$36,280
$58,630
Accounts payable
46,490
30,870
Income taxes payable
4,070
8,820

Prepare the operating activities section of the statement of cash flows using the direct method.

Reference no: EM13573979

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