=+EX 16-18 Statement of cash flows—indirect method obj. 2 748 Chapter 16 Statement of Cash Flows The income statement of Kodiak Industries Inc. for the current year ended June 30 is as follows:

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . $364,800 Cost of merchandise sold . . . . . . . . 207,200 ________ Gross profit . . . . . . . . . . . . . . . . . . . . $157,600 Operating expenses:

Depreciation expense . . . . . . . . . . $28,000 Other operating expenses . . . . . . 73,920 _______ Total operating expenses . . . . . 101,920 ________ Income before income tax . . . . . . . . $ 55,680 Income tax expense . . . . . . . . . . . . . 15,440 ________ Net income . . . . . . . . . . . . . . . . . . . . . $ 40,240 ________ ________