Problem 125A Bramble Corps income statement contained the co

Problem 12-5A Bramble Corp.\'s income statement contained the condensed information below. Bramble Corp. Income Statement For the Year Ended December 31, 2017 $3,171,900 Service revenue Operating expenses, excluding depreciation 2,007,780 Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income 179,850 52,320 2,239,950 931,950 183,120 $748,830 Bramble Corp.\'s balance sheet contained the compartive data at December 31 2017 2016 Accounts receivable Accounts payable Income taxes payable $228,900 134,070 42,510 $196,200 104,640 22,890 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the indirect parenthesis e.g. (15,000).)

Solution

Prepare operating activities indirect method :

Net income		748830
Adjustment to reconcile net income
Depreciation expense	179850
Loss on disposal of plant assets	52320
Increase account receivable	-32700
Increase account payable	29430
Increase income tax payable	19620
		248520
Net cash flow from operating activities		997350