Question

Exercise 23-06 Pronghorn Company’s income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $848,000 Operating expenses (excluding depreciation) $618,000 Depreciation expense 59,000 Loss on sale of equipment 25,000 702,000 Income before income taxes 146,000 Income tax expense 40,000 Net income $106,000 Pronghorn’s balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $39,000 $57,000 Accounts payable 39,000 32,000 Income taxes payable 4,200 8,900 (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).) PRONGHORN COMPANY Statement of Cash Flows (Partial) December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Depreciation ExpenseLoss on Sale of EquipmentNet IncomeIncrease in Accounts PayableIncrease in Accounts ReceivableDecrease in Accounts ReceivableDecrease in Accounts PayableGain on Sale of EquipmentIncrease in Income Taxes PayableDecrease in Income Taxes Payable $ Adjustments to reconcile net income to Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash     Loss on Sale of Equipment    Gain on Sale of Equipment    Decrease in Accounts Receivable    Depreciation Expense    Increase in Income Taxes Payable    Decrease in Income Taxes Payable    Net Income    Increase in Accounts Payable    Decrease in Accounts Payable    Increase in Accounts Receivable     $     Decrease in Income Taxes Payable    Depreciation Expense    Decrease in Accounts Payable    Decrease in Accounts Receivable    Net Income    Increase in Accounts Payable    Increase in Income Taxes Payable    Increase in Accounts Receivable    Loss on Sale of Equipment    Gain on Sale of Equipment         Increase in Income Taxes Payable    Loss on Sale of Equipment    Decrease in Income Taxes Payable    Depreciation Expense    Net Income    Decrease in Accounts Receivable    Gain on Sale of Equipment    Increase in Accounts Payable    Decrease in Accounts Payable    Increase in Accounts Receivable         Increase in Accounts Payable    Depreciation Expense    Decrease in Accounts Payable    Increase in Accounts Receivable    Decrease in Income Taxes Payable    Decrease in Accounts Receivable    Loss on Sale of Equipment    Net Income    Gain on Sale of Equipment    Increase in Income Taxes Payable         Net Income    Decrease in Income Taxes Payable    Increase in Accounts Receivable    Depreciation Expense    Decrease in Accounts Receivable    Increase in Accounts Payable    Decrease in Accounts Payable    Increase in Income Taxes Payable    Loss on Sale of Equipment    Gain on Sale of Equipment     Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash $ LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Answer 1