Zumbrunn Company's income statement contained the following condensed information.

ZUMBRUNN COMPANY

Income Statement

For the Year Ended December 31, 2020

Service revenue

$969,000

Operating expenses, excluding depreciation$623,000

Depreciation expense54,000

Loss on disposal of plant assets24,000

701,000

Income before income taxes268,000

Income tax expense39,000

Net income$229,000

Zumbrunn's balance sheets contained the comparative data at December 31, shown below.

2020

2019

Accounts receivable$74,000$59,000Accounts payable40,00027,000Income taxes payable10,0006,000

Accounts payable pertain to operating expenses.

Prepare the operating activities section of the statement of cash flows using the direct method