SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $318,525 Depreciation expense 55,800 Rent expense 62,775 Amortization expenses-Patents 6,975 Utilities expense 25,575 $2,325,000 1,139,250 1,185,750 Gain on sale of equipment Net income 469,650 716,100 9,300 725,400 $ Accounts receivable Inventory $32,850 increase 39,725 increase Accounts payable Salaries payable $ 9,075 decrease 2,100 decrease VPI CO. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of machinery Changes in current operating assets and liabilities Decrease in accounts receivable Increase in inventory Increase in accounts payable $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 0