Battery Builders, Inc. prepared statements of cash flows under both the direct and indirect methods. The operating sections of each statement under the two methods follow:
DIRECT METHOD
Collections from customers
$26,000
Payments in suppliers
(13,000)
Payments for operating expenses
(10,000)
Cash provided (used i by operating activities
$3,000
INDIRECT METHOD
Net income
$9,000
Depreciation
3,000
Gain DT mile 4d equipment
(2,000)
Increase in inventory
(3,000)
Increase in accounts receivable
(3,000)
Increase to accounts payable
1,000
Decrease in accrued payables
(2,000)
each provided fused, by operating activities
$3,000
REQUIRED:
Prepare an income statement from the information provided.
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