Prepare the operating activities section of the statement

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Pancho Company reported net income of $240,000 for 2020. Pancho sold equipment that cost $108,000 and had a book value of $64,800 for $54,800. The comparative balance sheet shows a decrease in accounts receivable of $21,000 for the year, a $14,000 increase in accounts payable, a $3,000 increase in prepaid expenses, and a $19,000 increase in accumulated depreciation.

Problem 1: Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method.

Reference no: EM132873477

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