Make sure to use the direct method.

Adeva Health Foods, Inc. reported the following comparative balance sheet and income statement for 2016. Adeva Health Foods, Inc. Comparative Balance Sheet December 31, 2016 and 2015 2015 2016 $ 19,000 $ 3,000 Cash.... ada4 22,000 23,000 Accounts receivable. Inventories..... 34,000 31,000 3,000 Prepaid expenses.. Equipment, net.. Intangible assets 1,000 90,000 79,000 9.000 9.000 $175.000 $148,000 oo Accounts payable. 14,000 $9,000 Accrued liabilities. 19,000