Service Revenue $840,000 Operating exepnses $624,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 710,000 Income before income taxes 130,000 Income tax expense 40,000 Net income $90,000 2012 2011 Accounts receivable $37,000 $59,000 Accounts payable 46,000 31,000 Income taxes payable 4,000 8,500 Prepare the operating activities section of the statement of cash flows using the direct method