Prepare an activity statement (operating statement) and a statement of cash flows (using the direct method).

10-18. The Science Road Show (SRS) is a not-for-profit organization that puts on traveling science demonstrations throughout the state. SRS operates on a September 1August 31 fiscal year. The organization began the year with the following account balances:

Cash $40,000 Grants Receivable 100,000 Inventory 4,000 Net Assets without Donor Restrictions 169,000 Notes Payable 50,000 Pledges Receivable, Net 10,000 PP&E, Net 75,000 Prepaid Rent 10,000 Wages Payable 20,000