V.O Krauss Company's income statement for the year ended December 31, 2020, contained the following condensed information $840,000 Service revenue Operating expenses (excluding depreciation) Depreciation expense $624,000 60,000 Loss on sale of equipment 26,000 710,000 Income before income taxes Income tax expense 130,000 40,000 $90,000 Net income Krauss's balance sheet contained the following comparative data at December 31. 2020 2019 Accounts receivable $37.000 $54,000 2020 2019 $37,000 $54,000 Accounts receivable Accounts payable Income taxes payable 41,000 31,000 4,000 8,500 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the direct method. KRAUSS COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, 2020 Cash Flows from Operating Activities 857000 Cash Receipts from Customers Cash Receipts from Customers Cash Payments for Income Taxes Cash Payments for Operating Expenses Increase in Inventory Decrease in Inventory KRAUSS COMPANY ement of Cash Flows (Partial) e Year Ended December 31, 2020 Increase in Accounts Receivable Decrease in Accounts Receivable Increase in Accounts Payable Decrease in Accounts Payable $ 857000 Dividends Received i Taxes Paid $ 614000 Interest Paid 44500 Taxes Paid $ 198500 Net Cash Provided by Operating Activities