Problem 17-6A

See attached...these answers are wrong

	Your answer is partially correct.Try again.

Zumbrunn Company?s income statement contained the condensed information below.

ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2017
Service revenue	$970,100
Operating expenses, excluding depreciation	$625,000
Depreciation expense	55,600
Loss on disposal of equipment	25,700	706,300
Income before income taxes	263,800
Income tax expense	39,200
Net income	$224,600

Zumbrunn?s balance sheet contained the comparative data at December 31, shown below.

2017	2016
Accounts receivable	$75,000	$60,400
Accounts payable	40,000	27,700
Income taxes payable	10,200	6,900

Accounts payable pertain to operating expenses.

Prepare the operating activities section of the statement of cash flows using the direct method.

ZUMBRUNN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2017For the Month Ended December 31, 2017December 31, 2017EAT_1417087284062_1_8241998817080065
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash23835708_0_31258184697694846_dropdown_86_resp_5
For Income TaxesIncrease in Income Taxes PayableNet IncomeLoss on Sale of EquipmentDepreciation ExpenseDecrease in Income Taxes PayableIncrease in Accounts PayableDecrease in Accounts ReceivableIncrease in Accounts ReceivableFor Operating ExpensesDecrease in Accounts PayableCash Receipts from Customers23835708_0_31258184697694846_dropdown_88_resp_1	$ 224600
AddLessresp_2 cash payments:
Decrease in Accounts ReceivableDecrease in Income Taxes PayableCash Receipts from CustomersNet IncomeIncrease in Accounts ReceivableFor Operating ExpensesFor Income TaxesIncrease in Income Taxes PayableLoss on Disposal of EquipmentDepreciation ExpenseIncrease in Accounts PayableDecrease in Accounts Payable23835708_0_31258184697694846_dropdown_94_resp_2	$ 55600
Cash Receipts from CustomersIncrease in Accounts ReceivableFor Operating ExpensesDepreciation ExpenseDecrease in Accounts ReceivableFor Income TaxesLoss on Disposal of EquipmentIncrease in Accounts PayableDecrease in Income Taxes PayableDecrease in Accounts PayableIncrease in Income Taxes PayableNet Income23835708_0_31258184697694846_dropdown_99_resp_3	25700
81300
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash3835708_0_31258184697694846_dropdown_107_resp_8	$ 305900

Problem 17-6A Your answer is partially correct. Try again. Zumbrunn Company's income statement contained the condensed information below. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2017 Service revenue $970,100 Operating expenses, excluding depreciation $625,000 Depreciation expense 55,600 Loss on disposal of equipment 25,700 706,300 Income before income taxes 263,800 Income tax expense 39,200 Net income $224,600 Zumbrunn's balance sheet contained the comparative data at December 31, shown below. 2017 Accounts receivable Accounts payable Income taxes payable 2016 $75,000 40,000 10,200 $60,400 27,700 6,900 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. ZUMBRUNN COMPANY Partial Statement of Cash Flows EAT_1417087284 For the Year Ended December 31, 2017 23835708_0_312 Cash Flow s from Operating Activities $ resp_2 Less cash payments: $ 3835708_0_3125 $