Refer to the information in Problem 16-9B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. Other information:

a. All accounts payable balances result from other expenses.

b. All consulting revenue is done on credit.

c. All credits to accounts receivable are receipts from customers.

d. All debits to accounts payable result from payments for other expenses.

Problem 16-9B

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Clear Strategy Corp. Clear Strategy Corp. Post-Closing Trial Balance ($millions) Income Statement For Year Ended December 31, 2020 ($millions) December 31 Revenues: Account 2020 2019 Consulting revenue. 8,750 Cash. $ 485 $ 75 Expenses: Receivables.. 500 350 Salaries expense 4,700 Prepaid insurance. 60 20 Other expenses. 1,600 Land.. 1,240 1,240 Equipment. Accumulated depreciation. Depreciation expense. 400 535 745 Total expenses 6,700 360 85 Accounts payable. Salaries payable. Profit from operations 2,050 155 70 Income tax expense.. 350 20 45 Profit. 1,700 Income tax payable 85 250 Notes payable. 175 1,655 Common shares 800 200 Retained earnings.. 1,225 125