SONAD COMPANY   Income Statement   For Year Ended December 31   Sales   $1,828,000   Cost of goods sold   991,000   Gross profit   837,000   Operating expenses       Salaries expense $245,535     Depreciation expense 44,200     Rent expense 49,600     Amortization expenses—Patents 4,200     Utilities expense 18,125 361,660       475,340   Gain on sale of equipment   6,200   Net income   $481,540           Accounts receivable $ 30,500 increase Accounts payable $ 12,500 decrease Inventory 25,000 increase Salaries payable 3,500 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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SONAD COMPANY  
Income Statement  
For Year Ended December 31  
Sales   $1,828,000  
Cost of goods sold   991,000  
Gross profit   837,000  
Operating expenses      
Salaries expense $245,535    
Depreciation expense 44,200    
Rent expense 49,600    
Amortization expenses—Patents 4,200    
Utilities expense 18,125 361,660  
    475,340  
Gain on sale of equipment   6,200  
Net income   $481,540  
       
Accounts receivable $ 30,500 increase Accounts payable $ 12,500 decrease
Inventory 25,000 increase Salaries payable 3,500 decrease

Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

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