Assignment
Thornton Company's income statement contained the condensed information below.
Thorton Company
Income Statement
For the Year Ended December 31, 2014
Service Revenue $970,000
Operating Expenses, excluding depreciation $614,000
Depreciation expense 55,000
Loss on disposal of plant assets 16,000 685,000
Income before income taxes 285,000
Income tax expense 56,000
Net Income $229,000
Thorton's balance sheet contained the comparative data at December 31.
2014 2013
Accounts receivable $70,000 $60,000
Accounts payable 41,000 32,000
Income tax 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.