Thornton Company's income statement contained the condensed information below.
THORNTON COMPANY
Income Statement
For the Year Ended December 31, 2014
Service revenue
$1,814,870
Operating expenses, excluding depreciation
$1,148,794
Depreciation expense
102,905
Loss on disposal of plant assets
29,936
1,281,635
Income before income taxes
533,235
Income tax expense
104,776
Net income
$428,459
Thornton's balance sheet contained the comparative data at December 31.
2014
2013
Accounts receivable $130,970 $112,260
Accounts payable 76,711 59,872
Income taxes payable 24,323 13,097
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
THORNTON COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2014