Exercise 23-6 Your answer is partially correct. Try again. Headland Company's income statement for the year ended December 31, condensed information. $848,000 Service revenue Operating expenses (excluding depreciation) Depreciation expense $618,000 59,000 25,000 E Loss on sale of equipment Income before income taxes Income tax expense 702,000 146,000 40,000 $106,000 Net income Study Headland's balance sheet contained the following comparative data at De 2017 2016 Accounts receivable Accounts payable $39,000 39,000 4,200 $57,000 32,000 8,900 Income taxes payable Headland's balance sheet contained the following comparative data at De Accounts receivable Accounts payable Income taxes payable 2017 $39,000 39,000 4,200 2016 $57,000 32,000 8,900 (Accounts payable pertains to operating expenses.) Prepare the operating activities section of the statement of cash flows usi amounts that decrease cash flow with either a - sign e.g. -15,000 HEADLAND COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income 106000 10600 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Net Income 106000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation expense 59000 Loss on Sale of Equipment 25000 Decrease in Accounts Receivable 18000 Increase in Accounts Payable 7000 Decrease in Income Taxes Payable Net Cash Provided by Operating Activities Click if you would like to Show Work for this question: Open Show Work