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