Problem:
The income statement of Dreamworks International Co. for the year ended December 31, 2002. reported the following condensed information.
|
Revenue from fees
|
$470,000
|
|
Operating expenses
|
280.000
|
|
Income from operations
|
190,000
|
|
Income tax expense
|
47,000
|
|
Net income
|
$143.000
|
Dreamworks' balance sheet contained the following comparative data at December 31.
|
|
2002
|
2001
|
|
Accounts receivable
|
$55.000
|
$40,000
|
|
Accounts payable
|
32,000
|
41,000
|
|
Income taxes payable
|
6,000
|
4,000
|
Dreamworks has no depreciable assets. (Accounts payable pertains to operating expenses.)
Instructions:
Prepare the operating activities section of the statement of cash flows using the direct method.