Data for Anne Droid Co. Ltd. are presented in P13-5B.
ANNE DROID CO. LTD.
Income Statement
For the Year Ended December 31, 2017
Service revenue...................................£551,000
Operating expenses................................400,000
Income from operations...........................151,000
Income tax expense.................................36,000
Net income.......................................£115,000
Anne Droid's statement of financial position contained these comparative data at December 31.
2017 2016
Accounts receivable.........£55,000........£70,000
Accounts payable..............40,000.........51,000
Income taxes payable.........12,000...........4,000
Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.