Data for Zumbrunn Company are presented in P17-5A. In P17-5A, Zumbrunn Companys income statement contained the condensed

Data for Zumbrunn Company are presented in P17-5A.

In P17-5A, Zumbrunn Company’s income statement contained the condensed information below.

Zumbrunn’s balance sheet contained the comparative data at December 31, shown below.

Instructions
Prepare the operating activities section of the statement of cash flows using the directmethod.

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ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2014 $970,000 Service revenile Operating expenses, excluding depreciation Depreciation expense Loss on disposal of equipment Income before income taxes Income tax expense Net income $624,000 60,000 16,000 700,000 270,000 40,000 $230,000 Accounts receivable Accounts payable Income taxes payable 2014 $75,000 46,000 11,000 2013 $65,000 28,000 7,000