Bracewell Ltd. reported net income of 195,000 for 2017. Bracewell also reported depreciation expense of 40,000 and a gain of 5,000 on disposal of plant assets. The comparative statements of financial position show an increase in accounts receivable of 15,000 for the year, a 17,000 increase in accounts payable, and a 4,000 decrease in prepaid expenses.

Instructions: Prepare the operating activities section of the statement of cash flows for 2017. Use the direct method.