Zumbrunn Company’s income statement contained the condensed information below.
ZUMBRUNN COMPANY
Income Statement
For the Year Ended December 31, 2015
Service revenue
$969,400
Operating expenses, excluding depreciation
$624,480
Depreciation expense
59,260
Loss on disposal of equipment
15,940
699,680
Income before income taxes
269,720
Income tax expense
40,520
Net income
$229,200
Zumbrunn’s balance sheet contained the comparative data at December 31, shown below.
2015
2014
Accounts receivable $74,490 $59,020
Accounts payable 41,990 28,710
Income taxes payable 10,850 6,760
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
4 answers