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 $624,900

Depreciation expense 55,600

Loss on disposal of plant assets 24,700 705,200

Income before income taxes 265,900

Income tax expense 39,600

Net income $226,300

Zumbrunn's balance sheets contained the comparative data at December 31, shown below.

2020 2019

Accounts receivable $74,800 $59,700

Accounts payable 41,000 27,700

Income taxes payable 10,500 6,300

Accounts payable pertain to operating expenses.

Prepare the operating activities section of the statement of cash flows using the direct method

I am having a hard time figuring out operating expenses for Statement of Cash flows.

I am having a hard time figuring out Income Taxes for Statement of Cash Flows

I have Cash Receipts from customers as $956,000

Less Cash payments for:

For Operating Expenses ???

For Income Taxes ???

I am confused by the prepaid expense and accrued expenses payable for Operating Expenses

I am confused by the For Income Taxes. I have 39,600 less increase in income taxes 4200 = $35,400 but my lab says that is wrong.

Can you please help?