P$13-6$B Prepare the operating activities section$--$direct method

The income statement of Darbyshire Inc. reported the following condensed information

DARBYSHIRE INC.

Income Statement

For the Year Ended December $31,2015$

Service revenue $$545,000$

Operating expenses $400,000$

Income from operations $145,000$

Income tax expense $36,000$

Net income $$109,000$

Darbyshire's balance sheet contained these comparative data at December $31.$

$20152014$

Accounts receivable $$50,000$ $$70,000$

Accounts payable $30,00051,000$

Income taxes payable $10,0004,000$

Darbyshire has no depreciable assets. Accounts payable pertain to operating expenses.

Instructions

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

NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a $"?".$