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.

Expert Solution

ekkarill92 answered 1 year ago

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

Teal Company’s income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $845,000 Operating expenses (excluding depreciation) $620,000 Depreciation expense 61,000 Loss on sale of equipment 26,000 707,000 Income before income taxes 138,000 Income tax expense 41,000 Net income $97,000 Teal’s balance sheet contained the following comparative data at December 31. 2017 2016 Accounts receivable $39,000 $56,000 Accounts payable 39,000 33,000 Income taxes payable 4,100 8,400 (Accounts payable pertains to operating expenses.) Prepare the...

Exercise 23-5 Sarasota Company’s income statement for the year ended December 31, 2017, contained the following...

Exercise 23-5 Sarasota Company’s income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $831,000 Operating expenses (excluding depreciation) $620,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 706,000 Income before income taxes 125,000 Income tax expense 40,000 Net income $85,000 Sarasota’s balance sheet contained the following comparative data at December 31. 2017 2016 Accounts receivable $37,000 $52,000 Accounts payable 41,000 31,000 Income taxes payable 4,100 8,500 (Accounts payable pertains to operating expenses.)...

Zumbrunn Company’s income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For the Year...

Zumbrunn Company’s income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 Service revenue $970,400 Operating expenses, excluding depreciation $624,100 Depreciation expense 55,400 Loss on disposal of plant assets 25,200 704,700 Income before income taxes 265,700 Income tax expense 39,100 Net income $226,600 Zumbrunn’s balance sheets contained the comparative data at December 31, shown below. 2020 2019 Accounts receivable $75,200 $59,800 Accounts payable 40,400 28,900 Income taxes payable 13,000 6,400 Accounts payable...

Exercise 23-06 Pronghorn Company’s income statement for the year ended December 31, 2020, contained the following...

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.)...

Blue Corp.’s income statement for the year ended December 31, 2020, had the following condensed information:...

Blue Corp.’s income statement for the year ended December 31, 2020, had the following condensed information: Service revenue $775,500 Operating expenses (excluding depreciation) $491,000 Depreciation expense 66,000 Unrealized loss on FV-NI investments 5,000 Loss on sale of equipment 12,500 574,500 Income before income taxes 201,000 Income tax expense 50,000 Net income $151,000 There were no purchases or sales of trading (FV-NI) investments during 2020. Blue’s statement of financial position included the following comparative data at December 31: 2020 2019 FV-NI...

Flounder Corp.’s income statement for the year ended December 31, 2020, had the following condensed information:...

Flounder Corp.’s income statement for the year ended December 31, 2020, had the following condensed information: Service revenue $773,000 Operating expenses (excluding depreciation) $491,000 Depreciation expense 60,000 Unrealized loss on FV-NI investments 4,700 Loss on sale of equipment 12,300 568,000 Income before income taxes 205,000 Income tax expense 57,000 Net income $148,000 There were no purchases or sales of trading (FV-NI) investments during 2020. Flounder’s statement of financial position included the following comparative data at December 31: 2020 2019 FV-NI...

Cheyenne Corp.’s income statement for the year ended December 31, 2020, had the following condensed information:...

Cheyenne Corp.’s income statement for the year ended December 31, 2020, had the following condensed information: Service revenue $773,600 Operating expenses (excluding depreciation) $497,000 Depreciation expense 57,000 Unrealized loss on FV-NI investments 4,500 Loss on sale of equipment 12,100 570,600 Income before income taxes 203,000 Income tax expense 52,000 Net income $151,000 There were no purchases or sales of trading (FV-NI) investments during 2020. Cheyenne’s statement of financial position included the following comparative data at December 31: 2020 2019 FV-NI...

Podracer Productions provides the following income statement for the year ended December 31, 2017. Income Statement...

Podracer Productions provides the following income statement for the year ended December 31, 2017. Income Statement Sales $1,530,600 Interest revenue 17,250 Cost of goods sold (895,400) General expenses (255,400) Depreciation expense (23,500) Salaries expense (114,300) Interest expense (12,500) Income tax expense (85,500) Loss on sale of equipment (9,500) Net income $ 151,750 In addition, Podracer provides the following balance sheet information Dec 31, 2017 Dec. 31, 2016 Accounts Receivable $250,400 $225,400 Interest Receivable 2,100 2,250 Inventory 74,300 59,550 Prepaid General...

In its income statement for the year ended December 31, 2017, Sandhill Co. reported the following...

In its income statement for the year ended December 31, 2017, Sandhill Co. reported the following condensed data. Salaries and wages expenses $697,500 Loss on disposal of plant assets $ 125,250 Cost of goods sold 1,480,500 Sales revenue 3,315,000 Interest expense 106,500 Income tax expense 37,500 Interest revenue 97,500 Sales discounts 240,000 Depreciation expense 465,000 Utilities expense 165,000 Prepare a multiple-step income statement. Calculate the profit margin and gross profit rate. (Round answers to 1 decimal place, e.g. 15.2%.) Profit...

In its income statement for the year ended December 31, 2017, Ivanhoe Company reported the following...

In its income statement for the year ended December 31, 2017, Ivanhoe Company reported the following condensed data. Salaries and wages expenses $558,000 Loss on disposal of plant assets $ 100,200 Cost of goods sold 1,184,400 Sales revenue 2,652,000 Interest expense 85,200 Income tax expense 30,000 Interest revenue 78,000 Sales discounts 192,000 Depreciation expense 372,000 Utilities expense 132,000 (a) Prepare a multiple-step income statement. (List other revenues before other expenses.) IVANHOE COMPANY Income Statement For the Month Ended December 31,...

Question