Please do not give solution in image format thanku E23-5 (Preparation of Operating Activities Section-Direct Method) Krauss Company's income state-ment for the year ended December 31, 2014, contained the following condensed information.$840,000Service revenueOperating expenses (excluding depreciation)Depreciation expenseLoss on sale of equipmentIncome before income taxesIncome tax expenseNet income$624,00060,00026,000710,000130,00040,000$ 90,000Krauss's balance sheet contained the following comparative data at December 31.2013$54,00031,0008,500Accounts receivableAccounts payableIncome taxes payable(Accounts payable pertains to operating expenses.)2014$37,00041,0004,000InstructionsPrepare the operating activities section of the statement of cash flows using the indirect method.

Cash flow from operating activities means the net amount received or paid by the entity for the…

E23-5 (Preparation of Operating Activities Section-Direct Method) Krauss Company's income state- ment for the year ended December 31, 2014, contained the following condensed information. $840,000 Service revenue Operating expenses (excluding depreciation) $624,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 Income before income taxes Income tax expense Net income 710,000 130,000 40,000 $90,000 Krauss's balance sheet contained the following comparative data at December 31. 2013 $54,000 31,000 8,500 Accounts receivable Accounts payable Income taxes payable (Accounts payable pertains to operating expenses.) 2014 $37,000 41,000 4,000 Instructions Prepare the operating activities section of the statement of cash flows using the indirect method.

E23-5 (Preparation of Operating Activities Section-Direct Method) Krauss Company's income state- ment for the year ended December 31, 2014, contained the following condensed information. $840,000 Service revenue Operating expenses (excluding depreciation) $624,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 Income before income taxes Income tax expense Net income 710,000 130,000 40,000 $90,000 Krauss's balance sheet contained the following comparative data at December 31. 2013 $54,000 31,000 8,500 Accounts receivable Accounts payable Income taxes payable (Accounts payable pertains to operating expenses.) 2014 $37,000 41,000 4,000 Instructions Prepare the operating activities section of the statement of cash flows using the indirect method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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