The income statement of Shapiro Inc. reported the following condensed information.

SHAPIRO INC.

Income Statement For the Year Ended December 31, 2007 Revenues Operating expenses Income from operations Income tax expense Net income

$5 4

45,000 00,000 1 45,000 47,000

$ 98,000 Shapiro’s balance sheet contained these comparative data at December 31.

Accounts receivable

- Accounts payable Income taxes payable 2007 2006

$50,000 $75,000 30,000 51,000 10,000 4,000 Shapiro has no depreciable assets. Accounts payable pertain to operating expenses.

Instructions Prepare the operating activities section of the statement of cash flows using the indirect method.