The income statement of Sage Hill Inc. for the year ended December 31, 2022, reported the following condensed information: Service revenue $660,000 Operating expenses 410,000 Income from operations 250,000 Income tax expense 25,000 Net income $225,000 Sage Hill's balance sheet contained the following comparative data at December 31: 2022 2021 Accounts receivable $56,500 $62,500 Accounts payable 36,500 42,500 Income taxes payable 4,100 2,300 Sage Hill 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.