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Homework answers / question archive / The following income statement and additional year-end information is provided
The following income statement and additional year-end information is provided.
SONAD COMPANY Income Statement
For Year Ended December 31 Sales $2,208,000 Cost of goods sold 1,081,920 Gross profit 1,126,080 Operating expenses Salaries expense $302,496 Depreciation expense 52,992 Rent expense 59,616 Amortization expenses—Patents 6,624 Utilities expense 24,288 446,016 680,064 Gain on sale of equipment 8,832 Net income $ 688,896
Accounts receivable $18,200 increase Accounts payable $8,450 decrease
Inventory
26,800 increase Salaries payable 3,850 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.)
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
| Statement of Cash Flows (partial) | |
| Cash flows from operating activities: | |
| Net income | $688,896 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| Income statement items not affecting cash: | |
| Depreciation Expense | $52,992 |
| Amortizatiom Expense- Patent | $6,624 |
| Gain on sale of equipment | ($8,832) |
| Changes in current operating assets and liabilities: | |
| Increase in accounts Receivable | ($18,200) |
| Increase in Inventory | ($26,800) |
| Decrease in account payable | ($8,450) |
| Decrease in salaries payable | ($3,850) |
| Net Cash flow provided by operating Activities | $682,380 |
