The income statement disclosed the following items for the year: depreciation expense $ 57,600 gain on disposal of equipment 33,600 net income 508,000 show me how net cash flow from operating activities, $103,850 show me how net cash flow from operating activities, $260,850 net cash flow from operating activities, $525,410 show me how chapter 13 statement of cash flows 643 (continued) copyright 2018 cengage learning. all rights reserved. may not be copied, scanned, or duplicated, in whole or in part. wcn 02-200-203 the changes in the current asset and liability accounts for the year are as follows: increase (decrease) accounts receivable $ 8,960 inventory (5,120) prepaid insurance (1,920) accounts payable (6,080) income taxes payable 1,410 dividends payable 2,200 a. prepare the cash flows from operating activities section of the statement of cash flows, using the indirect method

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.