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.
2017 2016
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.

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RATTIGAN plc Income Statement For the Year Ended December 31, 2017 £970,000 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income £624,000 55,000 25,000 704,000 266,000 40,000 £226,000