Exercise 23-5

Shamrock Companys income statement for the year ended December 31, 2017, contained the following condensed information.

Service revenue				$848,000
Operating expenses (excluding depreciation)		$628,000
Depreciation expense		61,000
Loss on sale of equipment		26,000		715,000
Income before income taxes				133,000
Income tax expense				40,000
Net income				$93,000

Shamrocks balance sheet contained the following comparative data at December 31.

		2017		2016
Accounts receivable		$37,000		$52,000
Accounts payable		39,000		32,000
Income taxes payable		4,000		8,400

(Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method.