Reporting and Interpreting Cash Flows from Operating Activities with Loss on Sale of Equipment (Indirect Method) New Vision Company completed its income statement and balance sheet for 2011 and provided the following information:
|
Service revenue |
$66,000 |
|
|
Expenses: |
||
|
Salaries |
$42,000 |
|
|
Depreciation |
$7,300 |
|
|
Utilities |
7,000 |
|
|
Loss on sale of equipment |
1,700 |
58,000 |
|
Net income |
$8,000 |
|
|
Partial Balance Sheet |
2011 |
2010 |
|
Accounts receivable |
$12,000 |
$24,000 |
|
Salaries payable |
$19,000 |
$10,000 |
|
Other accrued liabilities |
5,000 |
9,000 |
|
Land |
52,000 |
57,000 |
Required:
Present the operating activities section of the statement of cash flows for New Vision Company using the indirect method.