The income statement for Scott Construction for 2014 is as follows:

Scott Construction

Income Statement

For the Year Ended December 31, 2014

Sales $1,030,000

Cost of goods sold 630,000

Gross profit 400,000

Less:

Depreciation expense $65,000

Amortization of patent 7,500

Wages expense 59,000

Insurance expense 11,000 142,500

Income before taxes 257500

Less income taxes 91,000

Net income $ 166,500

Also,

• Accounts receivable decreased by $25,000 during the year.
• Accounts payable increased by $7,000.
• Wages payable had a balance of $0 at the beginning of the year; at the end of the year, the balance was $6,000
• Prepaid insurance increased by $10,000 during the year.

Prepare the operating activities section of the statement of cash flows for 2014 for Scott Construction using the indirect method.