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A Statement of Cash Flows.

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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

2002 2001
Accounts receivable $55,000 $40,000
Accounts payable 32,000 41,000
Income taxes payable 6,000 4,000

Dreamworks' balance sheet contained the following comparative data at December 31.
Dreamworks has no depreciable assets. (Accounts payable pertains to operating expenses.)
Prepare the operating activities section of the statement of cash flows using the direct method.


Solution Summary

The solution explains how to prepare a statement of cash flows for Dreamworks International using the direct method