Question
Thornton Companys income statement contained the condensed information below. THORNTON COMPANY Income Statement For the Year Ended December 31, 2014 Service revenue $2,882,840 Operating expenses,
Thornton Companys income statement contained the condensed information below. THORNTON COMPANY Income Statement For the Year Ended December 31, 2014
Service revenue $2,882,840
Operating expenses, excluding depreciation $1,824,808
Depreciation expense 163,460
Loss on disposal of plant assets 47,552 2,035,820
Income before income taxes 847,020
Income tax expense 166,432
Net income $680,588
Thorntons balance sheet contained the comparative data at December 31.
2014 2013
Accounts receivable $208,040 $178,320
Accounts payable 121,852 95,104
Income taxes payable 38,636 20,804
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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