The income statement of Anne Droid Inc. reported the following condensed information.

Anne Droid Inc.

Income Statement For the Year Ended December 31, 2014 Service revenue $551,000 Operating expenses 400,000 Income from operations 151,000 Income tax expense 36,000 Net income $115,000 Anne Droid’s balance sheet contained these comparative data at December 31.

2014 2013 Accounts receivable $55,000 $70,000 Accounts payable 40,000 51,000 Income taxes payable 12,000 4,000 Anne Droid 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.