(Preparation of Operating Activities Section-Direct Method)
Norman Company's income statement for the year ended December 31, 2010, contained the following condensed information.
Revenue from fees $840,000 cr
Operating expenses (excl. depreciation) $624,000 db
Depreciation expense 60,000 db
Loss on sale of equipment 26,000 db
Income before taxes 130,000 cr
Income tax expense 40,000 cr
Net income $90,000 cr
Accounts receivable $37,000 $59,000
Accounts payable 46,000 31,000
Income taxes payable 4,000 8,500
(Accounts payable pertains to operating expenses.)
Complete the operating activities section of the statement of cash flows using the direct method. (Enter all amounts as positive and subtract where necessary. List amounts from largest to smallest eg 10, 5, 3, 2.)
Partial Statement of Cash Flows
For the Year Ended December 31, 2010
Cash flows from operating activities
Cash collected from customers...................................$862,000
Cash paid to vendors for operating ...
A schedule is shown for you and a tutorial explains why the adjustments are as shown.