ES Exercise 23-6 Coronado Company\'s income statement for the year ended Decembe

Question

ES Exercise 23-6 Coronado Company's income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue Operating expenses (excluding depreciation) $624,000 Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income $839,000 60,000 26,000 710,000 129,000 39,000 90,000 Coronado's balance sheet contained the following comparative data at December 31 2017 2016 Accounts receivable $39,000 40,000 4,200 $53,000 32,000 8,300 Accounts payable ly Income taxes payable (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) CORONADO COMPANY Statement of Cash Flows (Partial)

Explanation / Answer

CORONADO COMPANY Statement of cash flow Cash Flow from Operating activities Net Income 90000 Add: Depreciation 60000 Add: loss on sale of equipment 26000 Add: Decrease in accounts receviable 14000 Add: Increase in accounts payable 8000 less: Decrease in income tax payable -4100 Net cash flow from operating activities 193900

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