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Anne Droids Direct 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

20142013
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 direct

method.

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