Question

The income statement of Packer Inc. for the year ended December 31, 2018, reported the following condensed information:
Revenue from fees.....................................   $585,000
Operating expenses...................................     340,000
Income from operations..............................    245,000
Income tax expense...................................     61,250
Net income.................................................   $183,750

Packer's statement of financial position contained the following comparative data at December 31:
2018 2017
Accounts receivable...................................               $52,500          $45,000
Accounts payable.......................................                 34,000           41,000
Income taxes payable.................................                 5,500             3,000

The corporation has no depreciable assets. Accounts payable pertain to operating expenses.

Instructions:
Using the direct method, prepare the operating activities of the statement of cash flows for the year ended December 31, 2018.

Answer 1