Brief Exercise 23-9

Tamarisk Corporation had the following 2017 income statement.

(a) Prepare Tamarisks cash flows from operating activities section of the statement of cash flows using the direct method.

(b) Prepare Tamarisks cash flows from operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

$102,000 Revenues 65,000 Expenses $37,000 In 2017, Tamarisk had the following activity in selected accounts Accounts Receivable 18,000 Write-offs 1,100 102,000 Collections 92,000 Revenues 26,900 12/31/17 Allowance for Doubtful Accounts 1,300 1,100 Bad debt expense 1,700 Write-offs 12/31/17 1,900