Rewe Company's income statement contained the condensed information below.

REWE COMPANY Income Statement For the Year Ended December 31, 2017
Service revenue		$970,000
Operating expenses, excluding depreciation	$614,000
Depreciation expense	55,000
Loss on disposal of plant assets	16,000	685,000
Income before income taxes		285,000
Income tax expense		56,000
Net income		$229,000

Rewe's balance sheet contained the comparative data at December 31.

	2017	2016
Accounts receivable	$70,000	$60,000
Accounts payable	41,000	32,000
Income taxes payable	13,000	7,000

Accounts payable pertain to operating expenses.

Instructions

Prepare the operating activities section of the statement of cash flows using the direct method.