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In: Accounting

Shamrock Company’s income statement for the year ended December 31, 2017, contained the following condensed information....

Shamrock Company’s income statement for the year ended December 31, 2017, contained the following condensed information.

Service revenue

$837,000

Operating expenses (excluding depreciation)

$621,000

Depreciation expense

60,000

Loss on sale of equipment

25,000

706,000

Income before income taxes

131,000

Income tax expense

40,000

Net income

$91,000


Shamrock’s balance sheet contained the following comparative data at December 31.

2017

2016

Accounts receivable $36,000 $55,000
Accounts payable 42,000 31,000
Income taxes payable 4,000 8,200


(Accounts payable pertains to operating expenses.)

Prepare the operating activities section of the statement of cash flows using the direct method.

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