The income statement of Darbyshire Inc. reported the following condensed information.
|
DARBYSHIRE INC Income Statement For the Year Ended December 31, 2014 |
|
|
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.
|
2014 |
2013 |
|
|
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 indirect method.