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Exercise 23-5 Buffalo Company's income statement for the year ended December 31, 2017, contained the following condensed information Service revenue Operating expenses (excluding depreciation) $626,000 Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income $842,000 61,000 27,000 714,000 128,000 40,000 $88,000 Buffalo's balance sheet contained the following comparative data at December 31 2017 2016 Accounts receivable Accounts payable Income taxes payable $37,000 39,000 4,100 $56,000 33,000 8,400 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method