Solution-Prepare the operating activities section of the

Prepare the operating activities section of the statement

Reference no: EM131562716

Problem - Thomton Company's income statement contained the condensed information below.

THORNTON COMPANY Income Statement For the Year Ended December 31, 2014
Service revenue		$3,273,750
Operating expenses, excluding depreciation	$2,072,250
Depreciation expense	185,625
Loss on disposal of plant assets	54,000	2,311,875
Income before income taxes		961,875
Income tax expense		189,000
Net income		$772,875

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

	2014	2013
Accounts receivable	$236,250	$202,500
Accounts payable	138,375	108,000
Income taxes payable	43,875	23,625

Accounts payable pertain to operating expenses.

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

Reference no: EM131562716

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Prepare the operating activities section of the statement

Reference no: EM131562716

Reference no: EM131562716

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