Wildhorse cos balance sheet contained the comparative data


Question - Wildhorse Co.'s income statement contained the condensed information below.

Wildhorse Co. Income Statement For the Year Ended December 31, 2017

Service revenue $2,463,800

Operating expenses, excluding depreciation $1,559,560

Depreciation expense 139,700

Loss on disposal of plant assets 40,640 1,739,900

Income before income taxes 723,900

Income tax expense 142,240

Net income $581,660

Wildhorse Co.'s balance sheet contained the comparative data at December 31.

2017 2016

Accounts receivable $177,800 $152,400

Accounts payable 104,140 81,280

Income taxes payable 33,020 17,780

Accounts payable pertain to operating expenses.

Prepare the operating activities section of the statement of cash flows using the indirect method.

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Accounting Basics: Wildhorse cos balance sheet contained the comparative data
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