Rewe Company’s income statement contained the condensed information below. LO11 REWE COMPANY Income Statement For the Year Ended December 31, 2017 Service revenue $970,000 Operating expenses, excluding depreciation $614,000 Depreciation expense 55,000 Loss on disposal of plant assets 16,000 685,000 Income before income taxes 285,000 Income tax expense 56,000 Net income $229,000 Rewe’s balance sheets contained the following comparative data at December 31.

2017 2016 Accounts receivable $70,000 $60,000 Accounts payable 41,000 32,000 Income taxes payable 13,000 7,000 Accounts payable pertain to operating expenses.

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