The income statement of Bluewater Services PLC and additional information for 2025 are shown below.
| Income Statement — For the Year Ended December 31, 2025 |
|---|
| Service Revenue | 240,000 |
| Salaries and Wages Expense | (88,000) |
| Operating Expenses | (54,000) |
| Interest Expense | (3,500) |
| Income Before Income Tax | 94,500 |
| Income Tax Expense | (24,000) |
| Net Income | 70,500 |
Additional information:
- Accounts receivable increased by $9,000 and unearned service revenue increased by $6,000.
- Salaries payable decreased by $3,000.
- Operating expenses include depreciation of $15,000 and amortization of $4,000. Prepaid rent increased by $2,000.
- Income tax payable increased by $2,400.
- All interest ($3,500) was paid in cash.
- Computer equipment was purchased for $30,000 cash, and investments were sold at carrying amount for $12,000 cash.
- Borrowings of $20,000 were repaid and cash dividends of $15,000 were paid.
- Cash and cash equivalents were $14,100 at the beginning of the year and $45,000 at the end.
Instructions: Prepare a statement of cash flows using the DIRECT method (IAS 7). In addition to the main statement, present a separate supporting schedule (working) for each of: Cash Received from Customers, Cash Paid to Employees, Cash Paid for Operating Expenses, Cash Paid for Income Tax — showing step by step how each figure is derived.