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

Service Revenue 834,000

Operating Expenses (Excluding Depreciation) $621,000

Depreciation Expense $60,000

Loss on Sale of Equipment $26,000 $707,000

Income before income taxes $127,000

Income Tax Expense $41,000

Net income $86,000

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

2020 2019

Accounts Receivable $39,000 $56,000

Accounts Payable $40,000 $30,000

Income Taxes Payable $4,200 $8,700

(Accounts payable pertains to operating expenses)

Prepare the operating activities section of the statement of cash flows using the direct method.