Vaughn Company's income statement for the year ended December 31, 2020, contained the following condensed information. Service revenue $846,000 Operating expenses (excluding depreciation) $630,000 Depreciation expense 61,000 Loss on sale of equipment 27,000 718,000 Income before income taxes 128,000 Income tax expense 40,000 Net income $88,000 Vaughn's balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $35,000 $57,000 Accounts payable 42,000 30,000 Income taxes payable 3,900 8,700 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. VAUGHN COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, 2020 4 Cash Flows from Operating Activities Cash Receipts from Customers 2 $ Net Cash Provided by Operating Activities $