P14-5A Grania Company’s income statement contained the condensed information below.

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Grania Company’s income statement contained the condensed information below.

Grania Company
Income Statement
For the Year Ended December 31, 2008
Sales revenue		970,000
Operating expenses, excluding depreciation	624,000
Depreciation expense	60,000
Loss on disposal of plant assets	16,000	700,000
Income before income taxes		270,000
Income tax expense		40,000
Net income		230,000

Grania’s balance sheet contained the comparative data at December 31, shown below.

	2008	2007
Accounts receivable	75,000	60,000
Accounts payable	41,000	28,000
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