The income statement of Shapiro Inc. reported the following condensed information.
| Shapiro Inc. | |||||
| Income Statement | |||||
| For the Year Ended December 31, 2008 | |||||
| Sales revenue | 545,000 | ||||
| Operating expenses, | 400,000 | ||||
| Income before income taxes | 145,000 | ||||
| Income tax expense | 47,000 | ||||
| Net income | 98,000 | ||||
Shapiro has no depreciable assets. Accounts payable pertain to operating expenses.
| 2008 | 2007 | ||
| Accounts receivable | 50,000 | 75,000 | |
| Accounts payable | 30,000 | 51,000 | |
| Income taxes payable | 10,000 | 4,000 | |
Instructions
Prepare the operating activities section of the statement of cash flows using the direct
method.
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