Exercise 23-5 Novak Company's income statement for the year ended December 31, 2017, contained the following condensed information. $845,000 Service revenue Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income $621,000 59,000 26,000 706,000 139,000 40,000 $99,000 Novak's balance sheet contained the following comparative data at December 31. 2017 Accounts receivable Accounts payable Income taxes payable $35,000 39,000 4,100 2016 $53,000 30,000 8,400 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. NOVAK COMPANY Statement of Cash Flows (Partial)