Krauss Companys income statement for the year ended December 31, 2014, contained the following condensed information.

Service revenue				$847,480
Operating expenses (excluding depreciation)		$627,910
Depreciation expense		59,220
Loss on sale of equipment		26,490		713,620
Income before income taxes				133,860
Income tax expense				38,170
Net income				$95,690

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

		2014		2013
Accounts receivable		$36,640		$59,960
Accounts payable		45,200		31,800
Income taxes payable		3,940		8,500

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