Data for Zumbrunn Company are presented below.
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ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2014 |
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|
Service revenue |
$970,000 |
|
|
Operating expenses, excluding depreciation |
$624,000 |
|
|
Depreciation expense |
60,000 |
|
|
Loss on disposal of equipment |
16,000 |
700,000 |
|
Income before income taxes |
270,000 |
|
|
Income tax expense |
40,000 |
|
|
Net income |
$230,000 |
|
|
2014 |
2013 |
|
|
Accounts receivable |
$75,000 |
$65,000 |
|
Accounts payable |
46,000 |
28,000 |
|
Income taxes payable |
11,000 |
7,000 |
Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.