b) direct method

omit part a)

Il m u nt of cash provided (used) by operations always be the same amount if it is determined by using the direct method or the indirect method? Explain. P17-3B Sable Island Ltd. is a private company reporting under ASPE. Its income statement contained the Prepare operating activities following condensed information: section-indirect and direct methods. (LO 2, 3) AP SABLE ISLAND LTD. Income Statement Year Ended December 31, 2017 Fees earned $900,000 Operating expenses $642,000 Depreciation expense 50,000 Gain on sale of equipment (23,000) 669,000 Profit from operations 231,000 Other expenses Interest expense 5,000 Profit before income tax 226,000 56,500 Income tax expense Profit $169,500 946 CHAPTER 17 The Cash Flow Statement (d) TAK Sable Island's balance sheet contained the following comparative data at December 31: 2017 2016 Accounts receivable $48,000 $56,000 Prepaid expenses 14,000 11,500 Accounts payable 41,000 36,000 Income tax payable 4,000 9,250 Interest payable 1,000 Unearned revenue 13,750 10,000 PLZ 550 Additional information: Accounts payable relate to operating expenses. Instructions Prepare the operating activities section of the cash flow statement using either (a) the indirect method or (b) the direct method, as assigned by your instructor