The income statement of Redman Inc. for the year ended December 31, 2020, reported the following condensed information:

Service revenue $ 600,000

Operating expenses 360,000

Income from operations 240,000

Income tax expense 60,000

Net income $180,000

Redman's statement of financial position contained the following comparative data at December 31:

2020 2019

Accounts receivable $65,000 $40,000

Accounts payable 40,000 55,000

Income taxes payable 6,000 3,000

Redman has no depreciable assets. Accounts payable pertains to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method.