The controller of Nebula Corporation has provided you with the following information:
Nebula Corporation
Income Statement
For the Year Ended December 31, 2017
Net sales 620,000
Operating expenses 410,000
Income from operations 210,000
Other revenues and expenses
Gain on sale of equipment 30,000
Interest expense 8,000 22,000
Income before income taxes 232,000
Income taxes 92,800
Net income 139,200
Nebula Corporation
Comparative Account Information
Relating to Operations
For the Year Ended December 31, 2017
2014 2013
Accounts receivable 56,000 40,000
Prepaid insurance 5,000 6,000
Accounts payable 59,000 47,000
Interest payable 600 1,500
Income taxes payable 4,200 6,000
Unearned revenue 20,000 14,000
Instructions
1. Prepare a statement of cash flows (for operating activities only) for the year ended December 31, 2017, using the direct method.
2. Prepare a statement of cash flows (for operating activities only) for the year ended December 31, 2017 using the indirect method.