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 Accounts receivable Inventory Statement of Cash Flows (Partial) $325,786 57,072 64,206 7,134 26,158 $ 29,450 increase Accounts payable 23,800 increase Salaries payable Cash flows from operating activities $ $ 2,378,000 1,165,220 1,212,780 Prepare the operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. 480,356 732,424 9,512 $ 741,936 0 $ 11,225 decrease 1,050 decrease

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Accounts receivable
Inventory
Statement of Cash Flows (Partial)
$325,786
57,072
64,206
Cash flows from operating activities
7,134
26,158
$ 29,450 increase Accounts payable
23,800 increase Salaries payable
$
$ 2,378,000
1,165, 220
1,212,780
Prepare the operating activities section of the statement of cash flows using the direct method.
Note: Amounts to be deducted should be indicated with a minus sign.
480,356
732,424
9,512
$ 741,936
0
$ 11,225 decrease
1,050 decrease
Transcribed Image Text: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 Accounts receivable Inventory Statement of Cash Flows (Partial) $325,786 57,072 64,206 Cash flows from operating activities 7,134 26,158 $ 29,450 increase Accounts payable 23,800 increase Salaries payable $ $ 2,378,000 1,165, 220 1,212,780 Prepare the operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. 480,356 732,424 9,512 $ 741,936 0 $ 11,225 decrease 1,050 decrease
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