Reference no: EM132101500

Question - Krauss Company's income statement for the year ended December 31, 2008, contained the following condensed information. Revenue from fees $840,000 Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income 2007 $624,000 60,000 26,000 710,000 130,000 40,000 $ 90,000 Krauss's balance sheet contained the following comparative data at December 31. 2008 Accounts receivable Accounts payable Income taxes payable (Accounts payable pertains to operating expenses.)

Instructions -

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

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