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 income statement of Booker T Industries Inc. for the current year ended June 30 is as follows: Sales     $574,310 Cost of merchandise sold     326,100 Gross profit     $248,210 Operating expenses:         Depreciation expense $44,070       Other operating expenses 116,510         Total operating expenses     160,580 Income before income tax     $87,630 Income tax expense     24,310 Net income     $63,320 Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:   Increase/ Decrease* Accounts receivable (net) $12,730*   Inventories 4,430   Prepaid expenses 4,240*   Accounts payable (merchandise creditors) 9,050*   Accrued expenses payable (operating expenses) 1,270   Income tax payable 3,040*   a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the direct method. Use the minus sign to indicate cash out flows, cash payments, decreases in…

Income statement data for Winthrop Company for two recent years ended December 31, are as follows:       Current Year       Previous Year Sales $516,000     $400,000   Cost of goods sold 428,400     340,000   Gross profit $87,600     $60,000   Selling expenses $26,180     $22,000   Administrative expenses 22,860     18,000   Total operating expenses $49,040     $40,000   Income before income tax $38,560     $20,000   Income tax expenses 15,400     8,000   Net income $23,160     $12,000   a.  Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.

The net income reported on the income statement for the current year was $149,900. Depreciation recorded on store equipment for the year amounted to $24,700. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: ETT End of Year Beginning of Year Cash $59,660 $54,290 Accounts receivable (net) 42,780 40,120 Inventories 58,410 61,080 Prepaid expenses 6,560 5,160 Accounts payable (merchandise creditors) 55,900 51,360 Wages payable 30,550 33,550 a. Prepare the "Cash flows from operating activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities b. Cash flows from…