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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 $ 2,262,000 Cost of goods
The following income statement and additional year-end information is provided.
SONAD COMPANY Income Statement For Year Ended December 31 | ||||||
Sales | $ | 2,262,000 | ||||
Cost of goods sold | 1,108,380 | |||||
Gross profit | 1,153,620 | |||||
Operating expenses | ||||||
Salaries expense | $ | 309,894 | ||||
Depreciation expense | 54,288 | |||||
Rent expense | 61,074 | |||||
Amortization expensesPatents | 6,786 | |||||
Utilities expense | 24,882 | 456,924 | ||||
696,696 | ||||||
Gain on sale of equipment | 9,048 | |||||
Net income | $ | 705,744 | ||||
Accounts receivable | $ | 21,600 | increase | Accounts payable | $ | 13,975 | decrease | |||
Inventory | 16,550 | increase | Salaries payable | 4,100 | 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.)
24,882 Gain on sale of equipment Net income 456,924 696,696 9,948 $ 705,744 Accounts receivable Inventory $21,600 increase Accounts payable 16,550 increase Salaries payable $13,975 decrease 4,100 decrease Prepare the operating activities section of the statement of cash flows using the indirect method (Amou indicated with a minus sign.) Statement of Cash Flows partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities OLL $
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