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

section—indirect method. Rattigan Company

(LO 3) Income Statement For the Year Ended December 31, 2014 Service revenue $970,000 Operating expenses, excluding depreciation $624,000 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 Cash from operations Prepare the operating activities section of the statement of cash flows using the indirect

$311,000 method.