Splish Brothers Inc.'s income statement contained the condensed information below.

Splish Brothers Inc.

Income Statement

For the Year Ended December 31, 2017

Service revenue

$1,251,300

Operating expenses, excluding depreciation

$792,060

Depreciation expense

70,950

Loss on disposal of plant assets

20,640

883,650

Income before income taxes

367,650

Income tax expense

72,240

Net income

$295,410

Splish Brothers Inc.'s balance sheet contained the comparative data at December 31.

2017

2016

Accounts receivable

$90,300

$77,400Accounts payable

52,890

41,280Income taxes payable

16,770

9,030

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).)