Zumbrunn Companys income statement contained the condensed information below.

ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2017
Service revenue				$971,300
Operating expenses, excluding depreciation		$624,600
Depreciation expense		55,400
Loss on disposal of equipment		25,000		705,000
Income before income taxes				266,300
Income tax expense				39,800
Net income				$226,500

Zumbrunns balance sheet contained the comparative data at December 31, shown below.

		2017		2016
Accounts receivable		$76,000		$59,900
Accounts payable		41,400		27,600
Income taxes payable		11,000		7,300

Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method.