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Zumbrunn Company's income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 Service revenue $971,100 Operating expenses,
Zumbrunn Company's income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 Service revenue $971,100 Operating expenses, excluding depreciation Depreciation expense Loss on disposal of plant assets $623,200 55,700 25,000 Income before income taxes 703,900 267,200 40,600 $226,600 Income tax expense Net income Zumbrunn's balance sheets contained the comparative data at December 31, shown below. 2020 2019 Accounts receivable Accounts payable Income taxes payable $74,500 40,500 10,200 $60,700 28,900 6,700 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) ZUMBRUNN COMPANY Partial Statement of Cash Flows X For the Year Ended December 31, 2020 Cash Flows from Operating Activities For Operating Expenses Less V cash payments: x Increase in Accounts Payable Increase in Income Taxes Payable 00 Cash at End of Period
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