Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following income statement and information about changes in noncash current assets and current liabilities are reported. Assume all sale as credit sales, all purchases
The following income statement and information about changes in noncash current assets and current liabilities are reported. Assume all sale as credit sales, all purchases of inventory are on credit. SONAD COMPANY Income Statement For Year Ended December 31, 2016 Sales Cost of goods sold Gross profit $1,551,000 759,990 791,010 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $212,487 37,224 41,877 4,653 17,061313,302 477,708 6,204 Gain on sale of equipment Net income $ 483,912 Changes in current asset and current liability accounts for the year that relate to operations follow. Accounts receivable S 34,700 increase Accounts payable 19,725 increaseSalaries payable $13,675 decrease 5,800 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 company. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (Partial) Cash flows from operating activities
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started