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.InstructionsPrepare the operating activities section of the statement of cash flows using the indirectmethod.

Transcribed Image Text:

RATTIGAN COMPANY Income Statement For the Year Ended December 31, 2012 $970,000 Sales revenue $624.000 Operating expenses, excluding depreciation Depreciation expense Loss on sale of equipment 60.000 16.000 700,000 Income before income taxes 270,000 Income tax expense 40,000 $230.000 Net income