Jackson Corporation computed the amount of cash flows from operations using both the direct and indirect methods, as follows:
|
Direct method: |
|
|
Collections from customers |
$445,000 |
|
Payments to suppliers |
(130,000) |
|
Payments for operating expenses |
(210,000) |
|
Cash flows provided by operating activities . |
$105,000 |
|
Indirect method: |
|
|
Net income. |
$ 95,000 |
|
Depreciation |
20,000 |
|
Gain on sale of equipment |
(7,500) |
|
Decrease in inventory |
1,000 |
|
Decrease in accounts receivable (net) |
1,500 |
|
Decrease in accounts payable |
(7,500) |
|
Increase in miscellaneous accrued payable . |
2,500 |
|
Cash flows provided by operating activities . |
$105,000 |
Using the data provided, prepare an income statement for Jackson Corporation for the year 2003.