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Exercise 23-6 Sage Companys income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $848,000 Operating expenses (excluding depreciation)

Exercise 23-6

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

Service revenue

$848,000

Operating expenses (excluding depreciation)

$618,000

Depreciation expense

59,000

Loss on sale of equipment

25,000

702,000

Income before income taxes

146,000

Income tax expense

40,000

Net income

$106,000

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

2017

2016

Accounts receivable $39,000 $57,000
Accounts payable 39,000 32,000
Income taxes payable 4,200 8,900

(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).)

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