Prepare the operating section of the cash flow statement using the direct method.

The income statement of Meaney Inc. for the year ended December 31, 2021, reported the following condensed information:

Service revenue.............................................................. 600,000

Operating expenses........................................................ 360,000

Profit from operations...................................................... 240,000

Income tax expense........................................................ 60,000

Profit.............................................................................. $ 180,000

Meaney's balance sheet contained the following comparative data at December 31:

2021 2020

Accounts receivable............................................... $ 50,000 $ 65,000

Accounts payable...................................................... 35,000 30,000

Income taxes payable................................................. 1,000 3,000

Meaney has no depreciable assets. Accounts payable pertains to operating expenses.

Required:

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