Statement of Cash Flows (Direct Method) The Towne Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow: TOWNE COMPANY Income Statement For the Year Ended December 31, 2013 Service Fees Earned Dividend and Interest Income $412,100 18,200 $430,300 Wages and Other Operating Expenses $370,500 Depreciation Expense 67,600 Franchise Amortization Expense 13,000 Loss on Sale of Equipment Gain on Sale of Investments Net Income 9,100 (22,100) 438,100 $-7,800