Chapter 16 Exercise 3 The following income statement and information about changes in noncash current assets and current liabilities are reported. eBook 2,430,000 1,190, 700 1,239, 300 Hint SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ Cost of goods sold Gross profit Operating expenses Salaries expense $ 332,910 Depreciation expense 58,320 Rent expense 65,610 Amortization expenses, 7,290 Patents Utilities expense 26,730 Gain on sale of equipment Net income 490,860 748, 440 9,720 758,160 Changes in current asset and current liability accounts for the year that relate to operations follow. Accounts receivable Inventory $ increase Accounts payable 25,600 28,925 increase salaries payable $11,000 decrease 1,050 decrease Required: Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Net income S758,160 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Gain on sale of equipment Amortization expense Patents 7,290 Depreciation expense 58,320 Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Net cash used in operating activities S 823,770