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Indigo Companys income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $845,000 Operating expenses (excluding depreciation) $621,000 Depreciation

Indigo Companys income statement for the year ended December 31, 2020, contained the following condensed information.

Service revenue

$845,000

Operating expenses (excluding depreciation)

$621,000

Depreciation expense

59,000

Loss on sale of equipment

26,000

706,000

Income before income taxes

139,000

Income tax expense

40,000

Net income

$99,000

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

2020

2019

Accounts receivable

$35,000 $53,000

Accounts payable

39,000 30,000

Income taxes payable

4,100 8,400

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

INDIGO COMPANY Statement of Cash Flows (Partial)

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