Zumbrunn Company's income statement contained the condensed information below.
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ZUMBRUNN COMPANY
Income Statement
For the Year Ended December 31, 2014
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Service revenue
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$970,000
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Operating expenses, excluding depreciation
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$624,000
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Depreciation expense
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60,000
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|
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Loss on disposal of equipment
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16,000
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700,000
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Income before income taxes
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270,000
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Income tax expense
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40,000
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Net income
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$230,000
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Zumbrunn's balance sheet contained the comparative data at December 31, shown below.
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2014
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2013
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Accounts receivable
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$75,000
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$65,000
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Accounts payable
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46,000
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28,000
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Income taxes payable
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11,000
|
7,000
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Accounts payable pertain to operating expenses.
Instructions
Prepare the operating activities section of the statement of cash flows using the indirect method.
Cash from operations $318,000