Cash Flows from Operating Activities: Indirect Method

The condensed single-step income statement for the year ended December 31, 2014, of Conti Chemical Company, a distributor of farm fertilizers and herbicides, follows.

Sales $26,000,000

Less: Cost of goods sold $15,200,000

Operating expenses (including depreciation of $1,640,000) 7,600,000

Income taxes expense 800,000 23,600,000

$2,400,000

Selected accounts from Conti Chemical