Cash flows from operating activities for both the indirect and direct methods are presented for Electronic Transformations.

Cash Flows from Operating Activities (Indirect method)
Net income	$	35,500
Adjustments for noncash effects:
Depreciation expense		8,500
Changes in current assets and current liabilities:
Increase in accounts receivable		(12,500)
Increase in accounts payable		7,500
Increase in income tax payable		5,500
Net cash flows from operating activities			$44,500
Cash Flows from Operating Activities (Direct method)
Cash received from customers	$	80,500
Cash paid for operating expenses		(25,500)
Cash paid for income taxes		(10,500)
Net cash flows from operating activities			$44,500

Required:

Complete the following income statement for Electronic Transformations. Assume all accounts payable are to suppliers.