Wildhorse Co.'s income statement contained the condensed information below.

Wildhorse Co.

Income Statement

For the Year Ended December 31, 2017

Service revenue

$2,463,800

Operating expenses, excluding depreciation

$1,559,560

Depreciation expense

139,700

Loss on disposal of plant assets

40,640

1,739,900

Income before income taxes

723,900

Income tax expense

142,240

Net income

$581,660

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

2017

2016

Accounts receivable

$177,800

$152,400Accounts payable

104,140

81,280Income taxes payable

33,020

17,780

Accounts payable pertain to operating expenses.

Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Wildhorse Co.

Partial Statement of Cash Flows

$

Adjustments to reconcile net income to

$

$