The income statement of Reagan Inc. for the year ended December 31, 2017, reported the following condensed information:

Service revenue		$700,000
Operating expenses		340,000
Income from operations		360,000
Income tax expense		50,000
Net income		$310,000

Roman's balance sheet contained the following comparative data at December 31:

		2017		2016
Accounts receivable		$75,000		$45,000
Accounts payable		40,000		50,000
Income taxes payable		6,000		4,000

Reagan has no depreciable assets. Accounts payable pertains to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method.