Lupasco Ltd. had the following 2017 income statement data:
Revenues ....................... $ 100,000
Expenses ........................... 60,000
..................................... $ 40,000
In 2017, Lupasco had the following activity in selected accounts:

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

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Accounts Receivable Allowance for Doubtful Accounts 20,000 1,200 Write-offs 1,000 1,540 Bad debt expense Revenues 100,000 1 1,000 Write-offs 90,000 Collections 12/31/17 29,000 1,740 12/31/17