Please complete it in the same format :). I will be sure to rate you well. Quest

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Please complete it in the same format :). I will be sure to rate you well.

Question 1 Zumbrunn Company's income statement contained the condensed information below ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2017 Service revenue Operating expenses, excluding depreciation Depreciation expense Loss on disposal of equipment Income before income taxes Income tax expense Net income $969,700 $624,400 54,800 25,900 705,100 264,600 39,000 $225,600 Zumbrunn's balance sheet contained the comparative data at December 31, shown below 2017 2016 Accounts receivable Accounts payable Income taxes payable $74,600 40,600 13,600 $60,600 28,500 8,000 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).)

Explanation / Answer

PREPARE OPERATING ACTIVITIES SECTION :

Cash flow from operating activities Net income 225600 Adjustment to reconcile net income Depreciation 54800 Loss on sale of equipment 25900 Increase account receivable (14000) Increase account payable 12100 Increase income tax payable 5600 84400 Net cash flow from operating activities 310000

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