Statement of Cash Flows - Direct Method
the Controller of Nebula

Statement of cash flows - direct method
The controller of Nebula Corporation has provided you with the following information:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Nebula Corporation
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Income Statement
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ For the Year Ended December 31, 2020


$\begin{array}{llcc} \text { Net sales..................................................... } &&\$620,000 \\ \text { Operating expenses.....................................} &&\underline{410,000}\\ \text {Income from operations................................ } &&210,000\\ \text { Other revenues and expenses } &\\ \text { Gain on sale of equipment........................... } &30,000\\ \text { Interest expense .........................................} &8,000&\underline{22,000}\\\text { Income before income taxes........................} &&232,000\\ \text { Income taxes..............................................} &&\underline{92,800}\\ \text {Net income.................................................. } &&\underline{\$139,200} \end{array}$

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Nebula Corporation
$\quad$$\quad$$\quad$$\quad$$\quad$ Comparative Account Information
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Relating to Operations
$\quad$$\quad$$\quad$$\quad$ For the Year Ended December 31, 2020
$\begin{array}{lrr} & \underline{2020} & \underline{2019} \\\text { Accounts receivable } & 56,000 & 40,000 \\\text { Prepaid insurance } & 5,000 & 6,000 \\\text { Accounts payable } & 59,000 & 47,000 \\\text { Interest payable } & 600 & 1,500 \\\text { Income taxes payable } & 4,200 & 6,000 \\\text { Unearned revenue } & 20,000 & 14,000\end{array}$

Instructions
Prepare a statement of cash flows (for operating activities only) for the year ended December 31, 2020, using the direct method.