Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and...
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Exercise 12-4 Indirect: Cash flows from operating activities LO P2
The following income statement and additional year-end information is provided.
| SONAD COMPANY Income Statement For Year Ended December 31 | ||||||
| Sales | $ | 2,396,000 | ||||
| Cost of goods sold | 1,174,040 | |||||
| Gross profit | 1,221,960 | |||||
| Operating expenses | ||||||
| Salaries expense | $ | 328,252 | ||||
| Depreciation expense | 57,504 | |||||
| Rent expense | 64,692 | |||||
| Amortization expensesPatents | 7,188 | |||||
| Utilities expense | 26,356 | 483,992 | ||||
| 737,968 | ||||||
| Gain on sale of equipment | 9,584 | |||||
| Net income | $ | 747,552 | ||||
| Accounts receivable | $ | 41,350 | increase | Accounts payable | $ | 10,850 | decrease | |||
| Inventory | 16,600 | increase | Salaries payable | 4,700 | 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.)
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