Portions of the financial statements for Horizon Telecom are provided below.

HORIZON TELECOM Income Statement For the year ended December 31, 2018
Revenues		$	614,000
Expenses:
Cost of goods sold	$ 362,000
Operating expenses	110,000
Depreciation expense	33,000
Income tax expense	54,500
Total expenses			559,500
Net Income		$	54,500

HORIZON TELECOM Selected Balance Sheet Data December 31, 2018
Increase in accounts receivable	$	5,100
Increase in inventory		11,000
Decrease in prepaid rent		9,900
Increase in operating expenses payable		6,500
Decrease in accounts payable		6,600
Increase in income tax payable		21,700

Required: Prepare the operating activities section of the statement of cash flows for Horizon Telecom using the direct method.