apter 16 E16A-27 Preparing operating activities cash flow-direct method The income statement of Rayana Inc. for the year ended December 31, 2013, Learning Objective 4 Appendix 16A reported the following condensed information: Net cash $238,000 $700,000 Service revenue 360,000 Operating expenses 340,000 Income from operations 60,000 Income tax expense $ 280,000 Net income Rayana's balance sheet contained the following comparative data at December 31: 2013 2012 Accounts receivable $ 75,000 $ 40,000 Accounts payable 40,000 50,000 Income taxes payable 6,000 3,000 Rayana has no depreciable assets. Accounts payable pertains operating expenses. to Requirements Prepare the operating activities section of the statement of cash flows using the direct method. ng Objective 4 E16A-28 Prenaring the stot