Lupasco Ltd. had the following 2020 income statement data: 

Revenues............$100,000 

Expenses................60,000 

..............................$ 40,000 

In 2020, Lupasco had the following activity in selected accounts: 

Prepare Lupasco's cash flows from operating activities section of the statement of cash flows using 

(a) The direct method, 

(b) The indirect method.

Transcribed Image Text:

Accounts Receivable Allowance for Doubtful Accounts 1/1/20 1/1/20 1,200 1,000 | 1,540 Bad debt expense 20,000 Revenues 100,000 1,000 Write offs Write offs 90,000 Collections 12/31/20 29,000 1,740 12/31/20