Norman Company's income statement for the year ended December 31, 2012, contained the following condensed information.
| Service revenue |
|
|
|
$849,940 |
| Operating expenses (excluding depreciation) |
|
$629,560 |
|
|
| Depreciation expense |
|
58,390 |
|
|
| Loss on sale of equipment |
|
25,820 |
|
713,770 |
| Income before income taxes |
|
|
|
136,170 |
| Income tax expense |
|
|
|
38,270 |
| Net income |
|
|
|
$97,900 |
Norman's balance sheet contained the following comparative data at December 31.
|
|
2012 |
|
2011 |
| Accounts receivable |
|
$36,280 |
|
$58,630 |
| Accounts payable |
|
46,490 |
|
30,870 |
| Income taxes payable |
|
4,070 |
|
8,820 |
(Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of cash flows using the direct method.
NORMAN COMPANY
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2012 |
 Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
|
|
| Increase in Accounts ReceivableDividends ReceivedDecrease in InventoryTaxes PaidIncrease in Accounts PayableDecrease in Accounts ReceivableInterest PaidCash Payments for Income TaxesCash Payments for Operating ExpensesDecrease in Accounts PayableIncrease in InventoryCash Receipts from Customers |
|
$ |
| Increase in InventoryCash Receipts from CustomersIncrease in Accounts PayableInterest PaidDecrease in InventoryIncrease in Accounts ReceivableDecrease in Accounts ReceivableCash Payments for Income TaxesCash Payments for Operating ExpensesDecrease in Accounts PayableDividends ReceivedTaxes Paid |
$ |
|
| Decrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accounts PayableIncrease in InventoryCash Payments for Income TaxesTaxes PaidDividends ReceivedInterest PaidCash Receipts from CustomersDecrease in InventoryCash Payments for Operating ExpensesDecrease in Accounts Receivable |
|
|
|
|
|
| Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
|
$ |