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Question - The income statement of Jetty Inc. for the year ended December 31, 2005, reported the following condensed information:
Jetty's balance sheet contained the following comparative data at December 31:
Jetty has no depreciable assets. Accounts payable pertains to operating expenses.
Revenue from fees $600,000
Operating expenses $360,000
Income from Operations $240,000
Income Tax Expense $60,000
Net Income $180,000
2005
2004
Accounts Receivable
$50,000
$65,000
Accounts Payable
$37,000
$41,000
Income Taxes Payable
$6,000
$3,000
Required - Make operating activities section of the statement of cash flows using the direct method.
Financial Statement Analysis and Preparation
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