Jackson Corporation computed the amount of cash flows from operations using both the direct and indirect methods, as follows:

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Direct method: Collections from customers. Payments to suppliers. Payments for operating expenses Cash flows provided by operating activities. Indirect method: Net income Depreciation Gain on sale of equipment Decrease in inventory Decrease in accounts receivable (net) $445,000 (130,000) (210,000) $105,000 $ 95,000 20,000 (7,500) 1,000 1,500 Decrease in accounts payable (7,500) Increase in miscellaneous accrued payable 2,500 Cash flows provided by operating activities. $105,000 Required: Using the data provided, prepare an income statement for Jackson Corporation for the year 2003.