The income statement of Meaney Inc. for the year ended December 31, 2014, reported the following condensed information: Meaney's balance sheet contained the following comparative data at December 31: $\begin{array}{rr}&2014&2013\
\text { Accounts receivable }&\$ 50,000 & \$ 65,000 \
\text { Accounts payable }&35,000 & 30,000 \
\text { Income taxes payable. }&1,000 & 3,000
\end{array}$ Meaney has no depreciable assets. Accounts payable pertains to operating expenses.
Instructions
Prepare the operating activities section of the cash flow statement, using the direct method.

Question

The income statement of Meaney Inc. for the year ended December 31, 2014, reported the following condensed information:  Meaney's balance sheet contained the following comparative data at December 31: $\begin{array}{rr}&2014&2013\
\text { Accounts receivable }&\$ 50,000 & \$ 65,000 \
\text { Accounts payable }&35,000 & 30,000 \
\text { Income taxes payable. }&1,000 & 3,000
\end{array}$ Meaney has no depreciable assets. Accounts payable pertains to operating expenses.
Instructions
Prepare the operating activities section of the cash flow statement, using the direct method.

Quizplus · Accepted Answer

The Answer of The income statement of Meaney Inc. for the year ended December 31, 2014, reported the following condensed information:  Meaney's balance sheet contained the following comparative data at December 31: $\begin{array}{rr}&2014&2013\
\text { Accounts receivable }&\$ 50,000 & \$ 65,000 \
\text { Accounts payable }&35,000 & 30,000 \
\text { Income taxes payable. }&1,000 & 3,000
\end{array}$ Meaney has no depreciable assets. Accounts payable pertains to operating expenses.
Instructions
Prepare the operating activities section of the cash flow statement, using the direct method.

The Income Statement of Meaney Inc Meaney Has No Depreciable Assets