The income statement of Anne Droid Co. Ltd. reported the following condensed information.
ANNE DROID CO. LTD.
Income Statement
For the Year Ended December 31, 2017
Service revenue...................................£551,000
Operating expenses................................400,000
Income from operations...........................151,000
Income tax expense.................................36,000
Net income.......................................£115,000
Anne Droid's statement of financial position contained these comparative data at December 31.
2017 2016
Accounts receivable.........£55,000........£70,000
Accounts payable..............40,000.........51,000
Income taxes payable.........12,000...........4,000
Anne Droid has no depreciable assets. Accounts payable pertain to operating expenses.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirect method.