Problem 7 (5 points) The income statement of Mehdi Inc. for the year ended December 31, 2020 reported the following condensed information: Service revenue Operating expenses Income from operations Income tax expense Net income $700,000 340.000 360,000 50.000 $310,000 Mehdi's balance sheet contained the following comparative data at December 31: Accounts receivable Accounts payable Income taxes payable 2020 $75,000 40,000 6,000 2019 $45,000 50,000 4,000 Mehdi has no depreciable assets. Accounts payable pertains to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. Instructions