Data for Anne Droid Inc. are presented in P13-5B.

Instructions

Prepare the operating activities section of the statement of cash flows using the direct method.

Data From P13-5B.

The income statement of Anne Droid Inc. reported the following condensed information.

Anne Droid Inc.
Income Statement

For the Year Ended December 31, 2014
Sales revenue ..................................$551,000
Operating expenses ............................400,000
Income from operations ......................151,000
Income tax expense ................................36,000
Net income ...........................................$115,000

Anne Droid’s balance sheet contained these comparative data at December 31.

Anne Droid has no depreciable assets. Accounts payable pertain to operating expenses.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirect method.

Transcribed Image Text:

2013 2014 Accounts receivable Accounts payable Income taxes payable $55,000 40,000 $70,000 51,000 4,000 12,000