Sarasota Corp.’s income statement contained the condensed information below. Sarasota Corp. Income Statement For the Year Ended December 31, 2022 Service revenue $2,231,000 Operating expenses, excluding depreciation $1,412,200 Depreciation expense 126,500 Loss on disposal of plant assets 36,800 1,575,500 Income before income taxes 655,500 Income tax expense 128,800 Net income $526,700 Sarasota Corp.’s balance sheets contained the following comparative data at December 31. 2022 2021 Accounts receivable $161,000 $138,000 Accounts payable 94,300 73,600 Income taxes payable 29,900 16,100 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method.
Sarasota Corp.’s income statement contained the condensed information below. Sarasota Corp. Income Statement For the Year Ended December 31, 2022 Service revenue $2,231,000 Operating expenses, excluding depreciation $1,412,200 Depreciation expense 126,500 Loss on disposal of plant assets 36,800 1,575,500 Income before income taxes 655,500 Income tax expense 128,800 Net income $526,700 Sarasota Corp.’s balance sheets contained the following comparative data at December 31. 2022 2021 Accounts receivable $161,000 $138,000 Accounts payable 94,300 73,600 Income taxes payable 29,900 16,100 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sarasota Corp.’s income statement contained the condensed information below.
|
Sarasota Corp.
Income Statement For the Year Ended December 31, 2022 |
||||
|---|---|---|---|---|
|
Service revenue
|
$2,231,000
|
|||
|
Operating expenses, excluding
|
$1,412,200
|
|||
|
Depreciation expense
|
126,500
|
|||
|
Loss on disposal of plant assets
|
36,800
|
1,575,500
|
||
|
Income before income taxes
|
655,500
|
|||
|
Income tax expense
|
128,800
|
|||
|
Net income
|
$526,700
|
Sarasota Corp.’s balance sheets contained the following comparative data at December 31.
|
2022
|
2021
|
|||
|---|---|---|---|---|
|
Accounts receivable
|
$161,000 | $138,000 | ||
|
Accounts payable
|
94,300 | 73,600 | ||
|
Income taxes payable
|
29,900 | 16,100 |
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of
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