Zumbrunn Company's income statement contained the following condensed information.

ZUMBRUNN COMPANY

Income Statement

For the Year Ended December 31, 2020

Service revenue. $971,800

Operating expenses, excluding depreciation. $625,000

Depreciation expense. 54,700

Loss on disposal of plant assets. 25,500. 705,200

Income before income taxes 266,600

Income tax expense 39,900

Net income $226,700

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

2020 2019

Accounts receivable. $75,800. $60,800

Accounts payable 41,600. 27,400

Income taxes payable. 10,800. 6,500

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).)

ZUMBRUNN COMPANY

Partial Statement of Cash Flows