The income statement of Hanalei International Inc. for the year ended December 31, 1996, reported the following condensed information:

Hanalei's balance sheet contained the following comparative data at December 31:

Hanalei has no depreciable assets. Accounts payable pertains to operating expenses.
\section*{Instructions}
Prepare the operating activities section of the statement of cash flows using the direct method.
\section*{P14-4A}
\section*{Instructions}
Using the data from Problem 14-3A, prepare the operating activities section of the statement of cash flows using the indirect method.

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Revenue from fees $430,000 Operating expenses 280,000 Income from operations 150,000 Income tax expense 47,000 Net income $103,000