Exercise 12 4 Indirect Cash flows from operating activities LO P2 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 $ 2,029,000 Cost of goods sold 994,210 Gross profit 1,034,790 Operating expenses Salaries expense $ 277,973 Depreciation expense 48,696 Rent expense 54,783 Amortization expensesPatents 6,087 Utilities expense 22,319 409,858 624,932 Gain on sale of equipment 8,116 Net income $ 633,048 Changes in current asset and current liability accounts for the year that relate to operations follow Accounts receivable $ 38,600 increase Accounts payable $ 15,550 decrease Inventory 16,000 increase Salaries payable 2,650 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 )

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Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and information about changes in noncash current assets and current liabilities

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

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			$	2,029,000
Cost of goods sold				994,210
Gross profit				1,034,790
Operating expenses
Salaries expense	$	277,973
Depreciation expense		48,696
Rent expense		54,783
Amortization expensesPatents		6,087
Utilities expense		22,319		409,858
				624,932
Gain on sale of equipment				8,116
Net income			$	633,048

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


Accounts receivable	$	38,600	increase	Accounts payable	$	15,550	decrease
Inventory		16,000	increase	Salaries payable		2,650	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.)