Sheffield Companys income statement contained the following condensed information.

SHEFFIELD COMPANY Income Statement For the Year Ended December 31, 2022
Service revenue				$969,600
Operating expenses, excluding depreciation		$623,100
Depreciation expense		54,300
Loss on disposal of plant assets		25,800		703,200
Income before income taxes				266,400
Income tax expense				40,400
Net income				$226,000

Sheffields balance sheets contained the comparative data at December 31, shown below.

		2022		2021
Accounts receivable		$75,200		$60,000
Accounts payable		40,600		27,900
Income taxes payable		12,300		7,300

Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Please show explanation!

Thank you!!

SHEFFIELD COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Cash Receipts from Customers $ Less cash payments: For Operating Expenses $ 703,200 For Income Taxes 306800 1010000 Net Cash Provided by Operating Activities $