Exercise 23-6

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

Service revenue $837,000 Operating expenses (excluding depreciation) $621,000 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 Flint's balance sheet contained the following comparative data at December 31 2017 2016 $55,000 Accounts receivable $36,000 Accounts payable 42,000 31,000 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 indirect method (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e g. (15,000).)