P12-68 Prepare the operating activities.section-direct.method The income statement of Darbyshire Inc. reported the following condensed information DARBYSHIRE INC. Income Statement For the Year Ended December 31, 2019 Service revenue $545,000 Operating expenses 400,000 Income from operations 145,000 Income tax expense 36,000 Net income $109,000 Darbyshire's balance sheet contained these comparative data at December 31. Accounts receivable Accounts payable Income taxes payable 2015 2014 $50,000 $70,000 30,000 51,000 10,000 4,000 Darbyshire has no depreciable assets. Accounts payable pertain to operating expenses Instructions Prepare the operating activities section of the statement of cash flows using the direct method. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". Cash flows from operating activities DARBYSHIRE INC. Partial Statement of Cash Flows For the Year Ended December 31, 2019 Cash receipts from customers Less cash payments: For operating expenses For income taxes Net cash provided by operating activities (1) Computation of cash receipts from customers Service revenue Add: Decrease in accounts receivable Cash receipts from customers Value (1) Value Value 25 (2) (3) ? Value Value ? (2) Computation of cash payments for operating expenses Operating expenses Add: Decrease in accounts payable Cash payments for operating expenses (3) Computation of cash payments for income taxes Income tax expense Deduct: Increase in income taxes payable Cash payments for income taxes Value Value 2 Value Value 2