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Zumbrunn Company’s income statement contained the condensed information below. Z

ID: 2588494 • Letter: Z

Question

Zumbrunn Company’s income statement contained the condensed information below.

ZUMBRUNN COMPANY
Income Statement
For the Year Ended December 31, 2015

$969,640

$624,810

60,490

15,970

701,270

268,370

39,320

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

2015

2014

6,180

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).)

ZUMBRUNN COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2015

Adjustments to reconcile net income to

depreciation expense: 60,490

loss on equipment 15,970

increas in AR (14,970)

increase in AP 13,320

increase in income taxes payable 4120

______________________

**I NEED THE TOTAL FROM THOSE AND

net cash provided by operating activities _____________

$229,050

ZUMBRUNN COMPANY
Income Statement
For the Year Ended December 31, 2015

Service revenue

$969,640

Operating expenses, excluding depreciation

$624,810

Depreciation expense

60,490

Loss on disposal of equipment

15,970

701,270

Income before income taxes

268,370

Income tax expense

39,320

Net income

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

2015

2014

Accounts receivable $75,760 $60,970 Accounts payable 41,880 28,560 Income taxes payable 10,300

6,180

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).)

ZUMBRUNN COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2015

$

Adjustments to reconcile net income to

Net Cash provide by operating activities

depreciation expense: 60,490

loss on equipment 15,970

increas in AR (14,970)

increase in AP 13,320

increase in income taxes payable 4120

______________________

**I NEED THE TOTAL FROM THOSE AND

net cash provided by operating activities _____________

$

$229,050

Explanation / Answer

Prepare the operating activities section of the statement of cash flows using the indirect method.

Net income 229050 Adjustment to reconcile net income Depreciation exp 60490 Loss on sale of equipment 15970 Increase in AR (14790) Increase in AP 13320 Increase in income tax payable 4120 Net cash flow from operating activities 308160