P13-6B Prepare the operating activities section-- direct method The income statement of Darbyshire Inc. reported the followingcondensed information DARBYSHIRE INC. Income Statement For the Year Ended December 31, 2015 Service revenue $545, 000Operating expenses 400,000 Income from operations 145,000 Income tax expense 36,000 Net income $109,000 Darbyshire'sbalance sheet contained these comparative data at December 31. 2015 2014 Accounts receivable $50,000 $70,000 Accountspayable 30,000 51,000 Income taxes payable 10,000 4,000 Darbyshire has no depreciable assets. Accounts payable pertain tooperating 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 "?".

The cash flow statement is a financial statement which shows the inflow and outflow of cash of the…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

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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