The Income Statement of Reagan Inc Roman's Balance Sheet Contained the Following Comparative Data at December

The income statement of Reagan Inc. for the year ended December 31 2017 reported the following condensed information: $\begin{array}{lr}\text { Service revenue } & \$ 700,000 \\\text { Operating expenses } & 340,000 \\\text { Income from operations } & 360,000 \\\text { Income tax expense } & 50,000 \\\text { Net income } & \$ 310,000\end{array}$ Roman's balance sheet contained the following comparative data at December 31: $\begin{array}{lrr}&2017&2016\\\text { Accounts receivable } & \$ 75,000 & \$ 45,000 \\\text { Accounts payable } & 40,000 & 50,000 \\\text { Income taxes payable } & 6,000 & 4,000\end{array}$ Reagan has no depreciable assets. Accounts payable pertains to operating expenses.
Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.