Rattigan plc’s income statement contained the condensed information below.

Rattigan’s statement of financial position 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 indirect method.

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Rattigan plc Income Statement For the Year Ended December 31, 2020 Service revenue £970,000 Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets £624,000 55,000 25,000 704,000 Income before income taxes 266,000 40,000 Income tax expense Net income £226,000 2020 2019 Accounts receivable Accounts payable Income taxes payable £75,000 41,000 13,000 £60,000 27,000 7,000