The Following Selected Financial Statement Information Is for Abel Inc

The following selected financial statement information is for Abel Inc.
Abel Inc.
Income Statement
For the Year Ended December 31, 2017
$\begin{array}{lr}\text { Sales } & \$ 2,600,000 \\\text { Cost of goods sold } & 1,640,000 \\\text { Gross margin } & 960,000 \\\text { Selling and administrative expenses } & 356,000 \\\text { Depreciation expense } & 84,000 \\\text { Operating income } & 520,000 \\\text { Gain on sale of equipment } & 6,400 \\\text { Income before taxes } & 526,400 \\\text { Income tax expense } & 184,240 \\\text { Net income } & -342,160\end{array}$
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { December } 31$ $\begin{array}{lrr}&2017&2016\\\text { Current Assets }\\\text { Cash } & \$ 160,000 & \$ 128,000 \\\text { Accounts receivable } & 40,000 & 32,000 \\\text { Merchandise inventory } & 50,000 & 64,000 \\\text { Prepaid expenses } & 16,000 & 10,800\\\\\text { Current Liabilities } & & \\ \text { Accounts payable } & 18,000 & 14,800 \\\text { Income tax payable } & 8,800 & 7,200\end{array}$
Using the indirect method,prepare the operating activities section of the statement of cash flows for Abel Inc.for the year ended December 31,2017.