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

MOSLEY COMPANY Income Statement For the Year Ended December 31, 2014 Service revenue $850,000 Operating expenses, excluding depreciation $506,000 Depreciation expense 56,000 Loss on disposal of plant assets 4,000 566,000 Income before income taxes 284,000 Income tax expense 80,000 Net income $204,000 Mosley’s balance sheet contained the comparative data at December 31, below.

2014 2013 Accounts receivable $72,000 $65,000 Accounts payable 27,000 35,000 Income taxes payable 23,000 18,000 Accounts payable pertain to operating expenses.

Instructions Prepare the operating activities section of the statement of cash flows using the indirect method.AppendixLO1