17.6A Prepare the operating activities section- direct method Zumbrunn Company's income statement contained the condensed information below. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 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 Zumbrunn's balance sheet contained the comparative data at December 31, shown below. 2020 2019 Accounts receivable $75,000 $65,000 Accounts payable 46,000 28,000 Income taxes payable 11,000 7,000 Accounts payable pertain to operating expenses. Instructions Prepare the operating activities section of the statement of cash flows using the direct method. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . ZUMBRUNN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Cash receipts from customers Value (1) Less cash payments: For operating expenses Value (2) For income taxes Value (3) ? Net cash provided by operating activities ? (1) Computation of cash receipts from customers Service revenue Value Deduct: Increase in accounts receivable Value Cash receipts from customers ? (2) Computation of cash payments for operating expenses Operating expenses per income statement Value Deduct: Increase in accounts payable Value Cash payments for operating expenses ? (3) Computation of cash payments for income taxes Income tax expense per income statement Value Deduct: increase in income taxes payable Value Cash payments for income taxes ? After you have completed the requirements of P17.6A, consider the additional question. Answers are on the other tab in this file. 1. Assume that the 2019 balance for accounts receivable, accounts payable and income taxes payable changed to $50,000, $35,000 and $18,000 respectively. Show the impact of these changes on the operating activities section of the statement of cash flows.