The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,710,000 Cost of goods sold 837,900 Gross profit 872,100 Operating expenses Salaries expense $ 234,270 Depreciation expense 41,040 Rent expense 46,170 Amortization expenses—Patents 5,130 Utilities expense 18,810 345,420 526,680 Gain on sale of equipment 6,840 Net income $ 533,520 Accounts receivable $ 26,000 increase Accounts payable $ 15,650 decrease Inventory 27,075 increase Salaries payable 3,850 decrease 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.
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,710,000 Cost of goods sold 837,900 Gross profit 872,100 Operating expenses Salaries expense $ 234,270
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