Cash Flow Statement Problem
Income Statement
Service Revewnue 920,000
Operating Expense 710,000
Income before Taxes 210,000
Income Tax Expense 52,500
Net Income 157,500
Balance Sheet 12/31/21 12/31/20
Cash 315,000 71,000
Accounts Receivable 122,000 101,000
Accrued Liabilities 72,000 61,000
Income Tax Payable 11,000 17,000
My problem is determining operating expense paid which I believe should be done by A/P T-account; And determining Income Tax paid which I believe should be straight forward (6000) to 52,500.
Income Statement
Service Revewnue 920,000
Operating Expense 710,000
Income before Taxes 210,000
Income Tax Expense 52,500
Net Income 157,500
Balance Sheet 12/31/21 12/31/20
Cash 315,000 71,000
Accounts Receivable 122,000 101,000
Accrued Liabilities 72,000 61,000
Income Tax Payable 11,000 17,000
- Common stock issued 102,000
- LT Invest 51,000 sold, orig cost 51,000
- 81,000 dividends paid
- Operating expense includes 31,000 depreciation expense
My problem is determining operating expense paid which I believe should be done by A/P T-account; And determining Income Tax paid which I believe should be straight forward (6000) to 52,500.