P 10-4 The income statement and other selected data for Frish Company follow:
FRISH COMPANY
Income Statement
For Year Ended December 31, 2011
	Accrual		Cash
Net sales	$640,000	($27,000)	$613,000
Expenses:
Cost of goods sold	360,000	$5,000	$365,000
Selling and administrative expense	43,000	($9,000)	$34,000
Other expense	2,000	($2,000)	$0
Total expenses	405,000		399,000
Income before income tax	235,000		214,000
Income tax	92,000	$10,000	$102,000
Net income	$143,000		$112,000
Other data:
a. Cost of goods sold, including depreciation expense of $15,000	*
b. Selling and administrative expense, including depreciation expense of $5,000
c. Other expense, representing amortization of patent, $3,000, and amortization of
bond premium, $1,000
d. Increase in accounts receivable	$27,000	*
e. Increase in accounts payable	15,000	*
f. Increase in inventories	35,000
g. Decrease in prepaid expenses	1,000	*
h. Increase in accrued liabilities	3,000	*
i. Decrease in income taxes payable	10,000	*
Required
a. Prepare a schedule of change from accrual basis to cash basis income statement.
b. Using the schedule of change from accrual basis to cash basis income statement
computed in (a), present the cash provided by operations, using (1) the direct approach
and (2) the indirect approach.