Data for Krayon Company are presented in E23-5B.
In E23-5B, Krayon Company€™s income statement for the year ended December 31, 2014, contained the following condensed information.

Krayon€™s balance sheet contained the following comparative data at December 31.

(Accounts payable pertains to operating expenses.)

Instructions
Prepare the operating activities section of the statement of cash flows using the indirectmethod.

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Revenue from fees Operating expenses (excluding depreciation) Depreciation expense Gain on sale of equipment Income before income taxes Income tax expense Net income $1,604,000 $1,280,000 111,000 (7.000 1,384,000 220,000 90,000 $130,000 2014 2013 Accounts receivable Accounts payable Income taxes payable $169,000 $119,000 82,000 16,500 25,000 132,000