The income statement of Jetty Inc. for the year ended December 31, 2005, reported the following condensed information:

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

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

Revenue from fees $ 600,000

Operating expenses $ 360,000

Income from Operations $ 240,000

Income Tax Expense $ 60,000

Net Income $ 180,000

2005 2004

Accounts Receivable $50,000 $65,000

Accounts Payable $37,000 $ 41,000

Income Taxes Payable $6,000 $3,000

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