Sheffield Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $848,000 $618,000 Operating expenses (excluding depreciation) Depreciation expense 59,000 Loss on sale of equipment 25,000 702,000 Income before income taxes 146,000 Income tax expense 40,000 Net income $106,000 Sheffield's balance sheet contained the following comparative data at December 31 Accounts receivable Accounts payable 2020 2019 $39,000 $57,000 39,000 32,000 Income taxes payable 4.200 8.900 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. SHEFFIELD COMPANY (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. SHEFFIELD COMPANY Statement of Cash Flows (Partial)