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Hi, can you please check if I did it right ? And how do I calculate the Amortization? The following income statement and information about
Hi, can you please check if I did it right ? And how do I calculate the Amortization?
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 | $ | 1,641,000 | ||||
Cost of goods sold | 804,090 | |||||
Gross profit | 836,910 | |||||
Operating expenses | ||||||
Salaries expense | $ | 224,817 | ||||
Depreciation expense | 39,384 | |||||
Rent expense | 44,307 | |||||
Amortization expensesPatents | 4,923 | |||||
Utilities expense | 18,051 | 331,482 | ||||
505,428 | ||||||
Gain on sale of equipment | 6,564 | |||||
Net income | $ | 511,992 | ||||
Changes in current asset and current liability accounts for the year that relate to operations follow.
Accounts receivable | $ | 20,000 | increase | Accounts payable | $ | 9,400 | decrease | |||
Inventory | 16,450 | increase | Salaries payable | 1,400 | 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 $511,992 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Gain on sale of equipment Depreciation expense Amortization expense-Patents (6,564) 39,384 Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable (20,000) (16,450) (9,400) (1,400) Net cash provided by operating activities $497,562
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