Krauss Company’s income statement for the year ended December 31, 2014, containe
ID: 2391170 • Letter: K
Question
Krauss Company’s income statement for the year ended December 31, 2014, contained the following condensed information.
$841,490
$629,100
62,300
24,390
715,790
125,700
40,360
$85,340
Krauss’s balance sheet contained the following comparative data at December 31.
2014
2013
(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).)
KRAUSS COMPANY
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2014
Adjustments to reconcile net income to
Open Show Work
Service revenue$841,490
Operating expenses (excluding depreciation)$629,100
Depreciation expense62,300
Loss on sale of equipment24,390
715,790
Income before income taxes125,700
Income tax expense40,360
Net income$85,340
Explanation / Answer
Answer:-
Krauss Company's Statement of Cash Flow (Using Indirect Method) Partial For the year ended, December 31,2014 Particulars Amount $ Cash flow from opreating activities Net Income 85340 Adjustments to reconcile net income to net cash provided by opreating activities Adjustment for non cash effects Depreciation 62300 Loss on sale of equipment 24390 Change in opreating assets & liabilities Decrease in accounts receivable 20980 Decrease in income taxes payable -4160 Increase in accounts payable 15930 Net cash flow from opreating activities (a) 204780Related Questions
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