2, 254,000 1, 104, 460 1, 149, 540 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses $ Salaries expense 308, 798 Depreciation expense 54,096 Rent expense 60, 858 Amortization expenses- 6,762 Patents Utilities expense 24,794 Gain on sale of equipment Net income 455, 308 694, 232 9,016 $ 703,248 Accounts receivable Inventory $ 12, 100 Accounts payable $ 12, 150 increase decrease 12, 125 increase Salaries payable 4,950 decrease Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities