Problem 13-5A Zumbrunn Company's income statement contained the condensed information below ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2015 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of equipment Income before income taxes Income tax expense Net income $969,980 $624,590 60,950 16,050 701,590 268,390 40,410 227,980 Zumbrunn's balance sheet contained the comparative data at December 31, shown below Accounts receivable Accounts payable Income taxes payable 2015 $75,720 41,530 10,960 2014 $60,360 27,150 7,540 Accounts payable pertain to operating expenses Prepare the operating activities section of the statement of cash flows using the indirect method. (Sho with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amour with either a -sign e.g.-15,000 or in parenthesis e.g.(15,000).) ZUMBRUNN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2015 I Cash Flows from Operating Activities Net Income 227980 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Loss on Disposal of Equipment Increase in Accounts Receivable 60950 16050 -15360 4380 420 Increase in Accounts Payable increase in Income Taxes Payable Net Cash Provided by Operating Activities