APPLY THE CONCEPTS: Prepare the operating activities section

The income statement and comparative balance sheets for Leonardo Inc. can be viewed by clicking on the links below. No depreciable assets were purchased or sold during the period; therefore, the increase in Accumulated Depreciation is due to depreciation expense for the period. Complete the operating activities section of the statement of cash flows. Use a minus sign (-) to indicate an outflow of cash. No sign is needed to indicate an inflow of cash.

Income Statement Leonardo Inc. Income Statement For the Year Ended December 31, 2013 Sales Cost of merchandise sold Gross profit Operating expenses Depreciation expense Other operating expenses Total operating expenses Income from operations Other revenue and expenses: Interest revenue Gain on sale of land Income before taxe Income taxes Net income $489,600 254,592 $235,008 $5,120 161,344 166,464 $68,544 $960 5,440 $73,984 19,584 $54,400 4,480