Refer to the information provided in P11€“3A for Alliance Technologies.
In P11€“3A, Portions of the financial statements for Alliance Technologies are provided below. Portions of the financial statements for Alliance Technologies are provided below.

Required:
Prepare the operating activities section of the statement of cash flows for Alliance Technologies using the directmethod.

Transcribed Image Text:

ALLIANCE TECHNOLOGIES Income Statement For the year ended December 31, 2015 Net sales $405,000 Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses $235,000 70,000 17,000 27,000 349,000 56,000 Net income ALLIANCE TECHNOLOGIES Selected Balance Sheet Data December 31, 2015, compared to December 31, 2014 Decrease in accounts receivable Increase in inventory Decrease in prepaid rent Increa e Decrease in accounts pavable Increase in income tax payable S 7,000 14,000 10,000 6,000 9,000 24,000 ase in salaries payabl