Question 3 (7 marks) The income statement of Price Ltd for the year ended 31 December 2020, reported the following condensed information: Revenue from fees $600,000 Operating expenses 360,000 Income from operations 240,000 Income tax expense 60,000 Net income $180,000 Price's balance sheet contained the following comparative data at December 31: 2020 2019 Accounts receivable $50,000 $45,000 Accounts payable 35,000 41,000 Income taxes payable 6,000 3,000 Price has no depreciable assets. Accounts payable pertains to operating expenses. Required:

(a) Calculate: i. Cash receipts from customers. (1 mark) ii. Cash payments for operating expenses. (1 mark)

(b) Prepare the operating activities section of the statement of cash flows for 2020. (5 marks)