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

Retzlaff's balance sheet contained the comparative data at December 31.

Accounts payable pertain to operating expenses.InstructionsPrepare the operating activities section of the statement of cash flows using the indirect method.

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RETZLAFF COMPANY Income Statement For the Year Ended December 31, 2012 $970,000 Revenues Operating expenses, excluding depreciation Depreciation expense Loss on sale of equipment Income before income taxes $614,000 55,000 16,000 685,000 285,000 56,000 Income tax expense Net income $229,000