Cotte Company's income statement contained the condensed information below.

Cotte'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 indirect method

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COTTE COMPANY Income Statement For the Year Ended December 31, 2011 $970,000 Revenues Operating expenses, excluding depreciation Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income $624,000 60,000 16,000 700,000 270,000 40,000 $230,000 2011 2010 Accounts receivable Accounts payable Income taxes payable $75,000 $60,000 28,000 7,000 138 41,000 11,000