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Sheridan Companys income statement contained the condensed information below. Sheridan Company Income Statement For the Year Ended December 31, 2022 Service revenue $582,000 Operating expenses,

Sheridan Companys income statement contained the condensed information below.

Sheridan Company Income Statement For the Year Ended December 31, 2022

Service revenue

$582,000

Operating expenses, excluding depreciation

$368,400

Depreciation expense

33,000

Loss on disposal of plant assets

9,600

411,000

Income before income taxes

171,000

Income tax expense

33,600

Net income

$137,400

Sheridan Companys balance sheets contained the following comparative data at December 31.

2022

2021

Accounts receivable

$42,000 $36,000

Accounts payable

24,600 19,200

Income taxes payable

7,800 4,200

Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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