Reference no: EM132629374

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

ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020

Service revenue $969,000

Operating expenses, excluding depreciation $623,000

Depreciation expense 54,000

Loss on disposal of plant assets 24,000

701,000

Income before income taxes 268,000

Income tax expense 39,000

Net income $229,000

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

2020 2019

Accounts receivable $74,000 $59,000

Accounts payable 40,000 27,000

Income taxes payable 10,000 6,000

Accounts payable pertain to operating expenses.

Required - Prepare the operating activities section of the statement of cash flows using the direct method.