Norman Company's income statement for the year ended December 31, 2012, contained the following condensed information.
| Service revenue |
|
|
|
$849,940 |
| Operating expenses (excluding depreciation) |
|
$629,560 |
|
|
| Depreciation expense |
|
58,390 |
|
|
| Loss on sale of equipment |
|
25,820 |
|
713,770 |
| Income before income taxes |
|
|
|
136,170 |
| Income tax expense |
|
|
|
38,270 |
| Net income |
|
|
|
$97,900 |
Norman's balance sheet contained the following comparative data at December 31.
|
|
2012 |
|
2011 |
| Accounts receivable |
|
$36,280 |
|
$58,630 |
| Accounts payable |
|
46,490 |
|
30,870 |
| Income taxes payable |
|
4,070 |
|
8,820 |
Prepare the operating activities section of the statement of cash flows using the direct method.