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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 Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 236,051 41,352 46,521 5,169 18,953 $ 1,723,000 844,270 878,730 348,046 530,684 6,892 $ 537,576 $ 32,300 increase Accounts payable 32,350 increase Salaries payable Accounts receivable Inventory Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Changes in current operating assets and liabilities Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 9,850 decrease 4,900 decrease

The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 236,051 41,352 46,521 5,169 18,953 $ 1,723,000 844,270 878,730 348,046 530,684 6,892 $ 537,576 $ 32,300 increase Accounts payable 32,350 increase Salaries payable Accounts receivable Inventory Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Changes in current operating assets and liabilities Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 9,850 decrease 4,900 decrease

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 12-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. Sales Cost of goods sold Gross profit Operating expenses SONAD COMPANY Income Statement For Year Ended December 31 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 236,051 41,352 46,521 5,169 18,953 $ 1,723,000 844,278 878,730 348,046 530,684 6,892 $ 537,576 $ 32,300 increase Accounts payable 32,350 increase Salaries payable Changes in current operating assets and liabilities Prepare the operating activities section of the statement of cash flows using the indirect method. Note: 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 $ 9,850 decrease 4,900 decrease $
Transcribed Image Text:Exercise 12-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. Sales Cost of goods sold Gross profit Operating expenses SONAD COMPANY Income Statement For Year Ended December 31 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 236,051 41,352 46,521 5,169 18,953 $ 1,723,000 844,278 878,730 348,046 530,684 6,892 $ 537,576 $ 32,300 increase Accounts payable 32,350 increase Salaries payable Changes in current operating assets and liabilities Prepare the operating activities section of the statement of cash flows using the indirect method. Note: 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 $ 9,850 decrease 4,900 decrease $
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