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Anne Droid Indirect Method

Price: $2.00


The income statement of Anne Droid Inc. reported the following condensed
information.

Anne Droid Inc.
Income Statement
For the Year Ended December 31, 2014
Sales revenue   551,000
Operating expenses,   400,000
Income before income taxes   151,000
Income tax expense   36,000
Net income   115,000

Anne Droid’s balance sheet contained these comparative data at December 31.
2014 2013

2014 2013
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.

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