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

Zamora 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.

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ZAMORA INC. Income Statement For the Year Ended December 31, 2012 Revenues Operating expenses Income from operations Income tax expense Net income $560,000 400,000 160,000 47,000 $113,000 Zamora's balance sheet contained these comparative data at December 31. 2012 2011 Accounts receivable $60,000 $75,000 Accounts payable 35,000 48,000 Income taxes payable 14,000 6,000