Krauss Company's income statement for the year ended December 31, 2014, contained the following

condensed information

Service Revenue $840,000

Opearing expenses (excluding Depreciation $624,000

Depreciaation expense 60,000

Loss on sale of equipment 26,000 710,000

Income before income taxes 130,000

income tax expense 40,000

Net income $90,000

Krauss's balance sheet contained the following comparative data at December 31

2014 2013

Accounts receivable $37,000 $54,000

Accounts payable 41,000 31,000

Income taxes Payable 4,000 8,500

(Accounts payable pertains to operating expenses)

Instructions

Prepare the opearing activities section of the statement of cash flows using the direct method and indirect method.

I will give 1,500 points to anyone who answers this correctly. Remember both the direct method and indirect method results should match!