Zumbrunn Companys income statement contained the condensed information below.

ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2017
Service revenue				$971,500
Operating expenses, excluding depreciation		$624,100
Depreciation expense		54,900
Loss on disposal of equipment		25,600		704,600
Income before income taxes				266,900
Income tax expense				39,900
Net income				$227,000

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

		2017		2016
Accounts receivable		$75,500		$61,000
Accounts payable		41,100		28,900
Income taxes payable		11,600		6,400

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