Problem 17-6A Zumbrunn Company's income statement contained the condensed information below ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2017 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of equipment Income before income taxes Income tax expense Net income $971,300 $624,200 54,600 25,600 704,400 266,900 39,400 $227,500 Zumbrunn's balance sheet contained the comparative data at December 31, shown below 2017 2016 Accounts receivable Accounts payable Income taxes payable $75,800 40,800 10,300 $61,000 27,200 6,900 Accounts payable pertain to operating expenses Prepare the operating activities section of the statement of cash flows using the direct method