Exercise 23-5 Kingbird Company's income statement for the year ended December 3 2017, contained the following condensed information. Service revenue $837,000 Operating expenses (excluding $621,000 depreciation) Depreciation expense 60,000 Loss on sale of equipment 25,000 706,000 Income before income taxes 131,000 Income tax expense 40,000 $91,000 Net income Kingbird's balance sheet contained the following comparative data at December 3 2017 2016 $55,000 Accounts receivable $36,000 Accounts payable 31,000 42,000 Income taxes payable 4,000 8,200 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method