SONAD COMPANY Income Statement For Year Ended December 31, 2017
Sales				$	2,321,000
Cost of goods sold					1,137,290
Gross profit					1,183,710
Operating expenses
Salaries expense	$	317,977
Depreciation expense		55,704
Rent expense		62,667
Amortization expensesPatents		6,963
Utilities expense		25,531			468,842
					714,868
Gain on sale of equipment					9,284
Net income				$	724,152

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

Accounts receivable	$	40,500		increase		Accounts payable	$	13,350		decrease
Inventory		31,675		increase		Salaries payable		4,000		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

Statement of cash flows

Cash flows from operating activities

Net cash provided by operating activities