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.   The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales   $ 2,189,000 Cost of goods sold   1,072,610 Gross profit   1,116,390 Operating expenses     Salaries expense $ 299,893   Depreciation expense 52,536   Rent expense 59,103   Amortization expenses—Patents 6,567   Utilities expense 24,079 442,178     674,212 Gain on sale of equipment   8,756 Net income   $ 682,968   Accounts receivable $ 46,450 increase Accounts payable $ 12,900 decrease Inventory 13,500 increase Salaries payable 5,150 decrease

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.

 

The following income statement and additional year-end information is provided.

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales   $ 2,189,000
Cost of goods sold   1,072,610
Gross profit   1,116,390
Operating expenses    
Salaries expense $ 299,893  
Depreciation expense 52,536  
Rent expense 59,103  
Amortization expenses—Patents 6,567  
Utilities expense 24,079 442,178
    674,212
Gain on sale of equipment   8,756
Net income   $ 682,968

 

Accounts receivable $ 46,450 increase Accounts payable $ 12,900 decrease
Inventory 13,500 increase Salaries payable 5,150 decrease

 

 
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