prepare operating activities section the cash flow statement by direct method. cash receipts from customers, cash payments to suppliers, cash payments for operating expenses, cash payments to employees, cash payments for interest and cash payments for income tax

cash payments operating expenses

TARIUS is determined by using the ont cash provided (used) by operations always be the same amount if it ned by using the direct method or the indirect method? Explain. --38 Sable Island Ltd. is a private company reporting under ASPE. Its income statement contained the following condensed information: Prepare operating a section-indirecta methods. L2 $900,000 SABLE ISLAND LTD. Income Statement Year Ended December 31, 2017 Fees earned Operating expenses $642,000 Depreciation expense 50,000 Gain on sale of equipment (23,000) Profit from operations Other expenses Interest expense Profit before income tax Income tax expense Profit 669,000 231,000 5,000 226,000 56,500 $169,500 The Cash Flow Statement Sable Island's balance sheet contained the following comparative data at December 31: 2017 Accounts receivable Prepaid expenses Accounts payable Income tax payable Interest payable Unearned revenue $48,000 14,000 41,000 4,000 1,000 13,750 2016 $56,000 11,500 36,000 9,250 550 10,000 Additional information: Accounts payable relate to operating expenses