Problem 17-6A

Zumbrunn Companys income statement contained the condensed information below.

ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2017
Service revenue				$971,400
Operating expenses, excluding depreciation		$623,200
Depreciation expense		54,300
Loss on disposal of equipment		24,000		701,500
Income before income taxes				269,900
Income tax expense				39,600
Net income				$230,300

Zumbrunns balance sheet contained the comparative data at December 31, shown below.

		2017		2016
Accounts receivable		$74,800		$60,800
Accounts payable		40,300		27,900
Income taxes payable		11,800		7,600

Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method.