Exercise 12-4 Indirect: Cash flows from operating activities LO P2

SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,509,000 739,410 769,590 $206,733 36,216 40,743 4, 527 16,599 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense 304,818 464,772 6,036 $470,808 Gain on sale of equipment Net income Changes in current asset and current liability accounts for the year that relate to operations follow. Accounts receivable $40,700 increase Accounts payable Inventory $12,125 decrease 1,300 decrease 30,200 increase Salaries payable Required Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method (Amounts to be educted should be Indicated with a minus sign.) of Cash Flows 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