Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Experience the ease of finding accurate answers to your questions from a knowledgeable community of professionals. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,828,000 Cost of goods sold 991,000 Gross profit 837,000 Operating expenses Salaries expense $ 245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses—Patents 4,200 Utilities expense 18,125 361,660 475,340 Gain on sale of equipment 6,200 Net income $ 481,540 Accounts receivable $ 30,500 increase Accounts payable $ 12,500 decrease Inventory 25,000 increase Salaries payable 3,500 decrease 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.)

Sagot :

Tundexi

Answer:

                      Statement of Cash Flows (partial)

Cash flows from operating activities

Net income                                                           $481,540

Adjustments to reconcile net income to

net cash provided by operating activities

Income statement items not affecting cash

Depreciation expense                   $44,200

Gain on sale of equipment           -$6,200

Amortization expenses–Patents   $4200

Changes in current operating

assets and liabilities

Decrease in accounts payable    -$12,500

Decrease in salaries payable       -$3,500

Increase in accounts receivable  -$30,500

Increase in Inventory                    -$25,000

Net changes                                                          -$29,300

Cash flows from operating activities                  $452,240

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.