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 $443,800 Dividend and Interest Income 19,600 $463,400 Wages and Other Operating Expenses $399,000 Depreciation Expense 72,800 Franchise Amortization Expense 14,000 Loss on Sale of Equipment 9,800 Gain on Sale of Investments Net Income (23,800) 471,800 $-8,400