Rattigan Company's income statement contained the condensed information below.
|
Rattigan Company Income Statement
For the Year Ended December 31, 2014
|
|
Sales revenue Operating expenses, excluding depreciation
|
$624,000
|
$970,000
|
|
Depreciation expense
|
55,000
|
|
|
Loss on disposal of plant assets
|
25,000
|
704,000
|
|
Income before income taxes
|
|
266,000
|
|
Income tax expense
|
|
40,000
|
|
Net income
|
|
$226,000
|
Rattigan's balance sheet contained the comparative data at December 31, shown below.
|
|
2014
|
2013
|
|
Accounts receivable
|
$75,000
|
$60,000
|
|
Accounts payable
|
41,000
|
27,000
|
|
Income taxes payable
|
13,000
|
7,000
|
Accounts payable pertain to operating expenses.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirect method.