PREPARING A STATEMENT OF CASH FLOWS. The income statement for 19x9 and balances sheets for 19x9 and 19x8 for Monon Cable Television Company follow:

REQUIRED:
Prepare a statement of cash flows, using the direct method to determine cash flows
from operations.

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Service revenue MONON CABLE TELEVISION COMPANY Income Statement For the Year Ended December 31, 19x9 Less: Operating expenses: $519,000 Royalty expense Wages Utilities Supplies Rent, poles Rent, building Depreciation Income from operations Other income (expenses): Gain on sale of antenna Interest expense Income before taxes Less: Income taxes expense Net income $240,000 26,000 83,000 13,000 17,000 62,000 28,000 469,000 50,000 800 (1,800) 49,000 9,000 $ 40,000