Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help, please. I'm not sure if I did it right. Exercise 12-18B Direct: Cash flows from operating activities LO P5 Using the following income statement
Help, please. I'm not sure if I did it right.
Exercise 12-18B Direct: Cash flows from operating activities LO P5 Using the following income statement and additional year-end information. $ 2,117,000 1,037,330 1,079,670 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 290,029 Depreciation expense 50,808 Rent expense 57, 159 Amortization expenses-Patents 6,351 Utilities expense 23,287 Gain on sale of equipment Net income 427,634 652,036 8,468 660,504 $ Accounts receivable Inventory $ 25, 300 increase 33,975 increase Accounts payable Salaries payable $ 13,025 decrease 2,950 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (Partial) Cash flows from operating activities Increase in Accounts receivable $ Gain on sale of equipment Increase in Inventory Decrease in Accounts payable Rent expense Utilities expense Decrease in Salaries payable 25,300 8,468 33,975 13,025 57,159 23,287 2,950 Net cash used in operating activities $ 164,164
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started