Thornton Company's income statement contained the condensed information below.

Thorton Company

Income Statement

For the Year Ended December 31, 2014

Service Revenue $970,000

Operating Expenses, excluding depreciation $614,000

Depreciation expense 55,000

Loss on disposal of plant assets 16,000 685,000

Income before income taxes 285,000

Income tax expense 56,000

Net Income $229,000

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

2014 2013

Accounts receivable $70,000 $60,000

Accounts payable 41,000 32,000

Income tax payable 13,000 7,000

Accounts payable pertain to operating expenses.

Instructions

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