Rattigan Companys income statement contained the condensed information below.

Rattigan Company Income Statement For the Year Ended December 31, 2014
Service revenue				$969,010
Operating expenses, excluding depreciation		$623,080
Depreciation expense		55,730
Loss on disposal of plant assets		25,500		704,310
Income before income taxes				264,700
Income tax expense				40,180
Net income				$224,520

Rattigans balance sheet contained the comparative data at December 31, shown below.

		2014		2013
Accounts receivable		$75,260		$60,790
Accounts payable		40,350		28,370
Income taxes payable		11,660		7,170

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