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The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,884,000 Cost of goods
The following income statement and additional year-end information is provided.
SONAD COMPANY Income Statement For Year Ended December 31 | ||||||
Sales | $ | 1,884,000 | ||||
Cost of goods sold | 923,160 | |||||
Gross profit | 960,840 | |||||
Operating expenses | ||||||
Salaries expense | $ | 258,108 | ||||
Depreciation expense | 45,216 | |||||
Rent expense | 50,868 | |||||
Amortization expensesPatents | 5,652 | |||||
Utilities expense | 20,724 | 380,568 | ||||
580,272 | ||||||
Gain on sale of equipment | 7,536 | |||||
Net income | $ | 587,808 | ||||
Accounts receivable | $ | 29,150 | increase | Accounts payable | $ | 12,150 | decrease | |||
Inventory | 36,325 | increase | Salaries payable | 3,150 | decrease | |||||
Prepare the 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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