Data for Rattigan plc are presented in P17.5.

Instructions

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

P17.5

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.

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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