Sheridan Company's income statement for the year ended December 31, 2020, contained the following condensed information.

Service revenue $848,000

Operating expenses (excluding depreciation) $626,000

Depreciation expense 60,000

Loss on sale of equipment 26,000 712,000

Income before income taxes 136,000

Income tax expense 41,000

Net income $95,000

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

2020 2019

Accounts receivable $37,000 $52,000

Accounts payable 41,000 32,000

Income taxes payable 4,100 8,700

(Accounts payable pertains 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).)

SHERIDAN COMPANY

Statement of Cash Flows (Partial)

$

Adjustments to reconcile net income to

$

$