Rattigan Company’s income statement contained the condensed information below.
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RATTIGAN COMPANY |
RATTIGAN COMPANY |
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Income Statement |
Income Statement |
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For the Year Ended December 31, 2012 |
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Sales revenue |
$970,000 |
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Operating expenses, excluding depreciation |
$624,000 |
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Depreciation expense |
60,000 |
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Loss on sale of equipment |
16,000 |
700,000 |
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Income before income taxes |
270,000 |
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Income tax expense |
40,000 |
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Net income |
$230,000 |
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Rattigan’s balance sheet contained the comparative data at December 31, shown below. |
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2012 |
2011 |
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Accounts receivable |
$75,000 |
$60,000 |
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Accounts payable |
41,000 |
28,000 |
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Income taxes payable |
11,000 |
7,000 |
Accounts payable pertain to operating expenses.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirect method.