P17-5A Grania Company’s

P17-5A Grania Company’s income statement contained the condensed information below. GRANIA COMPANY Income Statement For the Year Ended December 31, 2010 Revenues $970,000 Operating expenses, excluding depreciation $624,000 Depreciation expense 60,000 Loss on sale of equipment 16,000 700,000 Income before income taxes 270,000 Income tax expense 40,000 Net income $230,000 Grania’s balance sheet contained the comparative data at December 31, shown below. 2010 2009 Accounts receivable $75,000 $60,000 Accounts payable 41,000 28,000 Income taxes payable 11,000 7,000 Accounts payable pertain to operating expenses. Hint: Prepare the operating activities section—indirect method. (SO 3) Instructions Prepare the operating activities section of the statement of cash flows using the indirect method. Cash from operations $308,000