Zumbrunn Company’s income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 Service revenue $971,400 Operating expenses, excluding depreciation $623,600 Depreciation expense 55,900 Loss on disposal of plant assets 24,600 704,100 Income before income taxes 267,300 Income tax expense 39,600 Net income $227,700 Zumbrunn’s balance sheets contained the comparative data at December 31, shown below. 2020 2019 Accounts receivable $74,500 $59,000 Accounts payable 41,600 28,800 Income taxes payable 10,600 6,800 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method.
Zumbrunn Company’s income statement contained the following condensed information. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2020 Service revenue $971,400 Operating expenses, excluding depreciation $623,600 Depreciation expense 55,900 Loss on disposal of plant assets 24,600 704,100 Income before income taxes 267,300 Income tax expense 39,600 Net income $227,700 Zumbrunn’s balance sheets contained the comparative data at December 31, shown below. 2020 2019 Accounts receivable $74,500 $59,000 Accounts payable 41,600 28,800 Income taxes payable 10,600 6,800 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the direct method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Zumbrunn Company’s income statement contained the following condensed information.
|
ZUMBRUNN COMPANY
Income Statement For the Year Ended December 31, 2020 |
||||
| Service revenue |
$971,400
|
|||
| Operating expenses, excluding |
$623,600
|
|||
| Depreciation expense |
55,900
|
|||
| Loss on disposal of plant assets |
24,600
|
704,100
|
||
| Income before income taxes |
267,300
|
|||
| Income tax expense |
39,600
|
|||
| Net income |
$227,700
|
Zumbrunn’s balance sheets contained the comparative data at December 31, shown below.
|
2020
|
2019
|
|||
| $74,500 | $59,000 | |||
| Accounts payable | 41,600 | 28,800 | ||
| Income taxes payable | 10,600 | 6,800 |
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of
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