The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders, Inc.:

The following information is obtained from the income statement of Battery Builders:

In addition, the following information is obtained from the comparative balance sheets of Battery Builders (decreases in parentheses):

Required:
1. Prepare a complete accrual-basis income statement for the current year.
2. Compute the cash flows from operations using the indirect approach (that is, start with accrual-basis net income and adjust for various items to obtain cash flows from operations).

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Collections from customers $28,000 Payments to suppliers for purchases (13,000) Payments for operating expenses (9,000) Payments for current period income taxes (4,000) Cash provided by operating activities 2,000