Reference no: EM132739268

Question - Could you please help me preparing the operating activities section of the statement of Cash Flow - Indirect Method?

Income Statement Information ended year December 31, 2016:

Service revenue $960,000

Operating expenses (excluding depreciation) $586,000

Depreciation expense $70,000

Gain on sale of equipment $22,000

Income before income taxes $326,000

Income tax expense $100,000

Net income $226,000

Balance Sheet information:

2020 2019

Accounts receivable $32,000 $54,000

Accounts payable 51,000 31,000

Income taxes payable 6,000 8,500

Equipment 200,000 300,000

Inventory 100,000 90,000

Required - Prepare the operating activities section of the statement of cash flows using the indirect method, in good form.