The income statement of Sheridan Inc. for the year ended December 31, 2020, reported the following condensed information: Service revenue $763,000 Operating expenses 358,000 Income from operations 405,000 Income tax expense 77,000 Net income $328,000 Sheridan's balance sheet contained the following comparative data at December 31: 2020 2019 Accounts receivable $102,000 $63,000 Accounts payable 58,000 77,000 Income taxes payable 33,000 22,000 Sheridan has no depreciable assets. Accounts payable pertains to operating expenses.