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The controller of Nebula Corporation has provided you with the following information: Nebula Corporation Income Statement For the Year Ended December 31, 2017 Net sales..................................................................................................

The controller of Nebula Corporation has provided you with the following information:

Nebula Corporation

Income Statement

For the Year Ended December 31, 2017

Net sales.................................................................................................. 620,000

Operating expenses................................................................................ 410,000

Income from operations.......................................................................... 210,000

Other revenues and expenses

Gain on sale of equipment............................................................... 30,000

Interest expense............................................................................... 8,000 22,000

Income before income taxes.................................................................. 232,000

Income taxes........................................................................................... 92,800

Net income.............................................................................................. 139,200

Nebula Corporation

Comparative Account Information

Relating to Operations

For the Year Ended December 31, 2017

2014 2013

Accounts receivable 56,000 40,000

Prepaid insurance 5,000 6,000

Accounts payable 59,000 47,000

Interest payable 600 1,500

Income taxes payable 4,200 6,000

Unearned revenue 20,000 14,000

Instructions

Prepare a statement of cash flows (for operating activities only) for the year ended December 31, 2017, using the direct method.

Prepare a statement of cash flows (for operating activities only) for the year ended December 31, 2017 using the indirect method.

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