Loveless Corporation had the following 2014 income statement.
Revenues............. $100,000
Expenses............. ... 60,000
............. .............$ 40,000
In 2014, Loveless had the following activity in selected accounts.

Prepare Loveless's cash flows from operating activities section of the statement of cash flows using
(a) The direct method
(b) The indirect method.

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Accounts Receivable Doubtful Accounts 20,000 100,000 1,200 1,840 1/1/14 1/1/14 Bad debt expense 1,000 1,000 Revenues Write-offs Collections Write-offs 90,000 29,000 2,040 12/31/14 12/31/14