Solution-Prepare operating activity section of statement

Prepare operating activity section of statement for rattigan

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Reference no: EM13887731

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

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

Rattigan's balance sheet contained the comparative data at December 31, shown below.

	2014	2013
Accounts receivable	$75,000	$60,000
Accounts payable	41,000	27,000
Income taxes payable	13,000	7,000

Accounts payable pertain to operating expenses.

Instructions

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

Reference no: EM13887731

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Prepare operating activity section of statement for rattigan

Reference no: EM13887731

Reference no: EM13887731

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