Waterway Company's income statement contained the following condensed information. WATERWAY COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation $624,000 Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $970,700 56,000 25,800 705,800 264,900 39,000 $225,900 Waterway's balance sheets contained the following comparative data at December 31. 2022 2021 Accounts receivable $74,300 $59,700 Accounts payable 40,100 27.900 Income taxes payable 12,300 6,500