Data for Rattigan Company are presented in P13-5A.

Instructions

Prepare the operating activities section of the statement of cash flows using the direct method.

Data From P13-5A 

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 indirect method.

Transcribed Image Text:

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