Retzlaff Company”s income statement contained the condensed information below.
|
RETZLAFF COMPANY |
||
|
Revenues |
$970,000 |
|
|
Operating expenses, excluding depreciation |
$614,000 |
|
|
Depreciation expense |
55,000 |
|
|
Loss on sale of equipment |
16,000 |
685,000 |
|
Income before income taxes |
285,000 |
|
|
Income tax expense |
56,000 |
|
|
Net income |
$229,000 |
|
Retzlaff”s balance sheet contained the comparative data at December 31.
|
2012 |
2011 |
|
|
Accounts receivable |
$70,000 |
$60,000 |
|
Accounts payable |
41,000 |
32,000 |
|
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.