Grania Company’s income statement contained the condensed information below.
|
GRANIA COMPANY |
||
|
Revenues |
$970,000 |
|
|
Operating expenses, excluding depreciation |
$624,000 |
|
|
Depreciation expense |
60,000 |
|
|
Loss on sale of equipment |
16,000 |
700,000 |
|
Income before income taxes |
270,000 |
|
|
Income tax expense |
40,000 |
|
|
Net income |
$230,000 |
Grania’s balance sheet contained the comparative data at December 31, shown below.
|
2010 |
2009 |
|
|
Accounts receivable |
$75,000 |
$60,000 |
|
Accounts payable |
41,000 |
28,000 |
|
Income taxes payable |
11,000 |
7,000 |
Accounts payable pertain to operating expenses.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirect method.