Travel Incs income statement for the year ended on December 31, 2018, is presented below.

Service revenue	$ 925,000
Operating expenses	701,000
Operating income	224,000
Interest expense	75,000
Pre-tax income	149,000
Income tax expense	37,250
Net income	111,750

Travel Incs statement of financial position contains the following data as on December 31, 2018.

	Year 2018	Year 2017
Cash	$ 176,000	$ 75,000
Accounts receivable	37,000	47,000
Prepaid expenses	22,000	15,000
Land	136,000	141,000
Equipment	119,500	120,000
Accumulated deprecation - Equipment	(12,500)	(9,500)
Accounts payable	36,000	41,000
Salaries payable	29,500	20,000
Unearned revenue	12,000	9,000
Interest payable	1,250	5,000
Income tax payable	14,000	9,250
Bank loan	96,250	95,000
Common shares	89,000	109,250
Retained earnings	200,000	100,000

Please see below for additional information for the year of 2018:

1. Operating expenses include depreciation, $65,000; administrative expenses, $110,000; salaries expense, $500,000; and the loss on the disposal of equipment, $26,000.

2. Unearned revenue is received from customers.

3. Prepaid expenses and accounts payable relate to operating, specifically, administrative expenses.

4. Land was purchased for cash during the year.

5. Equipment with a historical cost of $41,000 and a carrying amount of $36,000 was sold at a loss of $4,000 on July 1, 2018.

6. Bank loans amounting to $65,000 were paid off on December 1, 2018 while some new loans were obtained during the year.

7. Common shares were not issued for cash while some common shares were reacquired during the year.

8. A cash dividend was declared and paid.

9. Assume that the allowance for doubtful accounts is zero in both years of 2018 and 2017.

10. Assume that there is a timing difference between the delivery of services to customers and the actual cash receipt from customers for the service delivery.

Prepare Travel Incs operating activities section of the statement of cash flows for the year ended on December 31, 2018, using the direct method, show calculations.

Operating activities should include : Cash receipts from customers, Cash payments for operating expenses, Cash payments to employees, Cash payments for interest, Cash payments for income tax