P12-6B Prepare the operating activities section--direct method The income statement of Darbyshire Inc. reported the following condensed information DARBYSHIRE INC. Income Statement For the Year Ended December 31, 2019 Service revenue $545,000 Operating expenses 400,000 Income from operations 145,000 Income tax expense 36,000 Net income $109,000 Darbyshire's balance sheet contained these comparative data at December 31. 2015 2014 Accounts receivable $50,000 $70,000 Accounts payable 30,000 51,000 Income taxes payable 10,000 4,000 Darbyshire has no depreciable assets. Accounts payable pertain to operating expenses. Instructions Prepare the operating activities section of the statement of cash flows using the direct method. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". DARBYSHIRE INC. Partial Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities Cash receipts from customers Value (1) Less cash payments: For operating expenses Value For income taxes Value ? Net cash provided by operating activities ? (1) Computation of cash receipts from customers Service revenue Value Add: Decrease in accounts receivable Value Cash receipts from customers (2) Computation of cash payments for operating expenses Operating expenses Value Add: Decrease in accounts payable Value Cash payments for operating expenses (3) Computation of cash payments for income taxes Income tax expense Value Deduct: Increase in income taxes payable Cash payments for income taxes (2) (3) ? Value