The income statement for Kosinski Manufacturing Company contains the following condensed information.
KOSINSKI MANUFACTURING COMPANY
Income Statement
For the Year Ended December 31, 2012
|
Sales revenue
|
|
$6,583,000
|
|
Operating expenses, excluding depreciation
|
$4,920,000
|
|
|
Depreciation expense
|
880,000
|
5,800,000
|
|
Income before income taxes
|
|
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. Machinery was purchased at a cost of $750,000. The following balances are reported on Kosinski's comparative balance sheet at December 31.
KOSINSKI MANUFACTURING COMPANY
Comparative Balance Sheets (partial)
|
2012
|
2011
|
|
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 2012. Dividends declared and paid in 2012 totaled $200,000.
Instructions
Prepare the statement of cash flows using the direct method.