Rattigan Company€™s income statement contained the condensed information below.

Rattigan€™s balance sheet contained the comparative data at December 31, shown below.

Accounts payable pertain to operating expenses.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirectmethod.

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Rattigan Company Income Statement For the Year Ended December 31, 2014 Sales revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $970,000 $624,000 55,000 25,000 704,000 266,000 40,000 $226,000 Accounts receivable Accounts payable Income taxes payable 2014 $75,000 41,000 13,000 2013 $60,000 27,000 7,000