ll.2 The following income statement and additional year-end information is providedSalesCost of goods soldGross profitOperating expensesSONAD COMPANYIncome StatementFor Year Ended December 31Salaries expenseDepreciation expenseRent expenseAmortization expenses-PatentsUtilities expenseGain on sale of equipmentNet incomeAccounts receivableInventoryCash flows from operating activitiesNet income$ 245,53544,20049,6004,20018.125$1,828,000991,000837,000361,660475,3406,200$ 481,540$ 30,500 increase Accounts payable i25,000 increase Salaries payablePrepare the operating activities section of the statement of cash flows using the indirect method (Amounts to be deducted should beindicated with a minus sign.)Changes in current operating assets and liabilitiesStatement of Cash Flows (partial)Adjustments to reconcile net income to net cash provided by operating activitiesIncome statement items not affecting cash$ 12,500 decrease3,500 decrease$452.240

Cash flow statement can be prepared by using two methods .One is Indirect method and other one is…

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 $ 245,535 44,200 49,600 4,200 18,125 $ 1,828,000 991,000 837,000 361,660 475,340 6,200 $ 481,540 $ 10,500 increase Accounts payable 25,000 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 (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partlai) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 12,500 decrease 3,500 decrease $ 452,240

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 $ 245,535 44,200 49,600 4,200 18,125 $ 1,828,000 991,000 837,000 361,660 475,340 6,200 $ 481,540 $ 10,500 increase Accounts payable 25,000 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 (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partlai) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash $ 12,500 decrease 3,500 decrease $ 452,240

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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