The income statement of Anne Droid Inc. reported the following condensed information.
Anne Droid Inc.
Income Statement
For the Year Ended December 31, 2014
Sales revenue ........$551,000
Operating expenses ......400,000
Income from operations ....151,000
Income tax expense .......36,000
Net income ..........$115,000
Anne Droid€™s balance sheet contained these comparative data at December 31.

Anne Droid has no depreciable assets. Accounts payable pertain to operating expenses.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirectmethod.

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2014 $55,000 40,000 12,000 2013 Accounts receivable Accounts payable Income taxes payable $70,000 51,000 4,000