Prepare the operating activities section of the statement of cash flows using the direct method.

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.8E
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P13-6B 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, 2015 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 "?".
Transcribed Image Text:P13-6B 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, 2015 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 "?".
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