The current assets and liabilities sections of the comparative balance sheets of Regent Inc., a private entity reporting under ASPE, at December 31 are presented below, along with the income statement:

Instructions

Prepare the operating section of the cash fl ow statement using the direct method.

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REGENT INC. Comparative Balance Sheet Accounts 2021 2020 Cash $27,720 $29,400 Accounts receivable 17,920 11,480 Inventory Prepaid expenses Accounts payable Accrued expenses payable Dividends payable Income taxes payable 9,100 12,880 2,100 12,040 1,624 10,080 1,400 2,240 6,720 4,760 1,904 3,304 REGENT INC. Income Statement Year Ended October 31, 2021 Sales $175,000 Cost of goods sold 109,200 Gross profit 65,800 Operating expenses Depreciation expense Loss on sale of equipment $24,640 6,440 2,240 33,320 Profit before income tax 32,480 Income taxes 8,120 Profit $ 24,360