Mosley Companys income statement contained the condensed information below. Mosleys balance sheet contained the comparative data at

Mosley Company’s income statement contained the condensed information below.

Mosley’s balance sheet contained the comparative data at December 31, below.

Accounts payable pertain to operating expenses.

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

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MOSLEY COMPANY Income Statement For the Year Ended December 31, 2014 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $850,000 $506,000 56,000 4,000 566,000 284,000 80,000 $204,000 Accounts reccivable Accounts payable Income taxes payable 2014 $72,000 27,000 23,000 2013 $65,000 35,000 18,000