Majestic Corporation had the following 2014 income statement data:
Revenues ....................... $100,000
Expenses ........................ 60,000
$ 40,000
In 2014, Majestic had the following activity in selected accounts:

Prepare Majestic's cash flows from operating activities section of the statement of cash flows using
(a) The direct method, and
(b) The indirect method.

Transcribed Image Text:

Accounts Receivable Allowance for Doubtful Accounts 20,000 1,21) 100,0001,000 X2,03 Revenues Writeoffs Writeoffs Collections 1,000 1,540 Bad debt expense 12/31/14 290) 1,740 12/31/14