use the direct method

El Zahabi Corp., a merchandiser, recently completo com Credit ales, (2) all credi e (2) all credits to Accounts Receivable reflect cash recipes t recently completed its 2015 operations. For the year. (1) all sales are can receipts from customers, (3) all purchases are on credit, (4) all debits to Accounts Payable reflect cash payments for ash payments for inventory. (5) Other e are all cash expenses, and (6) any change in Income Taxes Payable reflects the elect the scrual and cash payment of fakes. The company's balance sheets and income staccato Problem 100A Indirect Statement of cash flows P1 P2 P3 w I ZAHABI CORPORATION Comparative Balance Sheets December 31, 2015 and 2014 2014 Assets Cash Accounts receivable... Merchandise inventory Total corrent assets Equipment Accum. depreciation Equipment Total assets $164,000 82,000 601.000 848,000 335.000 (158,000) $1,025,000 $107.000 71.000 526.000 704,000 299.000 1104,000) $,000 EL ZAHABI CORPORATION Income Statement For Year Ended December 31, 2015 Liabilities and Equity Accounts payable.. Income taxes payable Total current abilities $ 87.000 28,000 115,000 $ 71,000 25,000 96.000 $1,792,000 1,086,000 706,000 592,000 568,000 Equity Common stock, 52 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity... Sales Cost of goods sold. Gross profit. Operating expenses... Depreciation expense.. Other expenses Income before taxes.. Income taxes expense. Net income $ 54.000 494,000 196,000 122.000 $1,025,000 160,000 75,000 $899.000 548,000 158,000 22.000 $ 135,000 Additional Information on Year 2015 Transactions a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $89,000 in cash dividends. Required Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the method. Check Cash from operating activities, $122.000