Direct: Cash flows from operating activities LO P5

The following income statement and information about changes in noncash current assets and current liabilities are reported.

SONAD COMPANY Income Statement For Year Ended December 31, 2017
Sales				$	2,067,000
Cost of goods sold					1,012,830
Gross profit					1,054,170
Operating expenses
Salaries expense	$	283,179
Depreciation expense		49,608
Rent expense		55,809
Amortization expensesPatents		6,201
Utilities expense		22,737			417,534
					636,636
Gain on sale of equipment					8,268
Net income				$	644,904

Changes in current asset and current liability accounts for the year that relate to operations follow.

Accounts receivable	$	41,700		increase		Accounts payable	$	9,525		decrease
Inventory		19,250		increase		Salaries payable		1,850		decrease

Use the direct method to prepare only the cash provided or used by operating activities section of the statement of cash flows for this company. (Amounts to be deducted should be indicated with a minus sign.)

Statement of Cash Flows (Partial) Cash flows from operating activities $ 0