The condensed single-step income statement for the year ended December 31, 2014, of Conti Chemical Company, a distributor of farm fertilizers and herbicides, follows.

Selected accounts from Conti Chemical€™s balance sheets for 2014 and 2013 follow.

Prepare a schedule of cash flows from operating activities using the indirectmethod.

Transcribed Image Text:

Sales Less: Cost of goods sold Operating expenses (including depreciation of $1,640,000) Income taxes expense Net income 26,000,000 $15,200,000 7,600,000 800,000 23,600,000 S 2,400,000 2014 Accounts receivable Inventory Prepaid expenses Accounts payable Accrued liabilities Income taxes payable 4,800,000 1,680,000 520,000 1,920,000 120,000 280,000 2013 $3,400,000 2,040,000 360,000 1440,000 200,000 240,000