P12-6B Prepare the operating activities section-direct method 2 Mosley's Company's income statement contained the condensed information below MOSLEY COMPANY Income Statement For the Year Ended December 31, 2014 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $850,000 $506,000 56,000 10 4,000 $566,000 $284,000 80,000 204.000 12 13 l 14 15 16 Mosley's balance sheet contained the comparative data at December 31, below. 17 18 19 2014 Accounts receivable Accounts payable Income taxes payable 2013 $72,000 $65,000 27,000 35,000 23,000 8,000 21 22 Accounts payable pertains to operating expenses. 23 24 Instructions 25 Prepare the operating activities section of the statement of cash flows using the direct method. 26 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "? 27