The income statement for the year ended December 31, 2017, for Laskowski Manufacturing Company contains the following condensed
information.
Laskowski Co. Income Statement
Sale Revenues $6,583,000
Operating expenses
(excluding depreciation) $4,920,000
Depreciation expense 880,000 5,800,000
Income before income tax 783,000
Income tax expense 353,000
Net income $430,000
Included in operating expenses is a $24,000 loss resulting from the sale of machinery for $270,000 cash. The company purchased machinery at a cost of $750,000. Laskowski reports the following balances on its comparative balance sheets at December 31.
Laskowski Co. Comparative Balance Sheets (Partial)
2017 2016
Cash $672,000 $130,000
Accounts receivable 775,000 610,000
Inventory 834,000 867,000
Accounts payable 521,000 501,000
Income tax expense of $353,000 represents the amount paid in 2017. Dividends declared and paid in 2017 totaled $200,000. Here were no new borrowings but $113821 of existing debt was paid off. Prepare the statement of cash flows using the indirect method.
Laskowski Co. Income Statement
Sale Revenues $6,583,000
Operating expenses
(excluding depreciation) $4,920,000
Depreciation expense 880,000 5,800,000
Income before income tax 783,000
Income tax expense 353,000
Net income $430,000
Included in operating expenses is a $24,000 loss resulting from the sale of machinery for $270,000 cash. The company purchased machinery at a cost of $750,000. Laskowski reports the following balances on its comparative balance sheets at December 31.
Laskowski Co. Comparative Balance Sheets (Partial)
2017 2016
Cash $672,000 $130,000
Accounts receivable 775,000 610,000
Inventory 834,000 867,000
Accounts payable 521,000 501,000
Income tax expense of $353,000 represents the amount paid in 2017. Dividends declared and paid in 2017 totaled $200,000. Here were no new borrowings but $113821 of existing debt was paid off. Prepare the statement of cash flows using the indirect method.
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