Problem 13-6A Rattigan Company’s income statement contained the condensed inform
ID: 2476887 • Letter: P
Question
Problem 13-6A
Rattigan Company’s income statement contained the condensed information below.
Rattigan Company
Income Statement
For the Year Ended December 31, 2014
$969,470
$624,310
54,750
24,940
704,000
265,470
39,290
$226,180
Rattigan’s balance sheet contained the comparative data at December 31, shown below.
2014
2013
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the direct method.
RATTIGAN COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2014
Rattigan Company
Income Statement
For the Year Ended December 31, 2014
$969,470
Operating expenses, excluding depreciation$624,310
Depreciation expense54,750
Loss on disposal of plant assets24,940
704,000
Income before income taxes265,470
Income tax expense39,290
Net income$226,180
Explanation / Answer
Answer
Prepare the operating activities section of the statement of cash flows using the direct method
Rattigan Company
Partial Statement of cashflows
For the year ended December 31, 2014
Figures in $
Particulars
Amount
Service revenue
a
969470
Operating expenses, excluding depreciation
b
-624310
Income tax expense
c
-39290
Accounts Receivables
d
-15350
(60180-75530)
Accounts payable
e
12410
(41310-28900)
Income taxes payable
f
4770
(11010-6240)
Cash flow from operating activities (a+b+c+d+e+f)
307700
Rattigan Company
Partial Statement of cashflows
For the year ended December 31, 2014
Figures in $
Particulars
Amount
Service revenue
a
969470
Operating expenses, excluding depreciation
b
-624310
Income tax expense
c
-39290
Accounts Receivables
d
-15350
(60180-75530)
Accounts payable
e
12410
(41310-28900)
Income taxes payable
f
4770
(11010-6240)
Cash flow from operating activities (a+b+c+d+e+f)
307700