E23-5 (LO2,3) (Preparation of Operating Activities Section-Direct Method) Krauss Company's income statement for the year ended December 31, 2017, contained the following condensed information Service revenue $840,000 $624,000 Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment 60.000 26,000 710,000 Income before income taxes Income tax expense 130,000 40,000 Net income 90,000 Krauss's balance sheet contained the following comparative data at December 31 2017 2016 Accounts receivable Accounts payable Income taxes payable $54,000 31,000 8,500 $37,000 41,000 4,000 (Accounts payable pertains to operating expenses.) Instructions Prepare the operating activities section of the statement of cash flows using the direct method. E23-6 (LO2,3) (Preparation of Operating Activities Section-Indirect Method) Data for Krauss Company are presented in E23-5. Instructions Prepare the operating activities section of the statement of cash flows using the indirect method