Norman Company's income statement for the year ended December 31, 2010, contained the following condensed information. Norman's balance sheet contained the following comparative data at December 31. (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows using the directmethod.

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Revenue from fees Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income Accounts receivable Accounts payable Income taxes payable 2010 $37,000 46,000 4,000 $624,000 60,000 26,000 2009 $59,000 31,000 8,500 $840,000 710,000 130,000 40,000 $ 90,000