Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 16-18b direct: cash flows from operating

Exercise 16-18B Direct: Cash flows from operating activities LO P5 Using the...

70.2K

Verified Solution

Question

Accounting

Exercise 16-18B Direct: Cash flows from operating activities LO P5
Using the following income statement and additional year-end information.
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 expensesPatents 4,200
Utilities expense 18,125361,660
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 direct method. (Amounts to be deducted should be indicated with a minus sign.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

-Give the reaction of the dissolution of NH4Cl in water (Use lowest possible coefficients. Include states...

Finance
1.2K views

As you learned, mergers and acquisitions can be beneficial for companies (and sometimes, less than beneficial)....

Biology
1.2K views

How does fertilization increase genetic diversity within a species A Alleles form new combinations by...

Physics
1.2K views

51 A thin film soap bubble of radius R is given a uniform negative charge...

Physics
1.2K views

A chain of mass M and Length L is held on a frictionless table in...

Statistics
1.2K views

A single six sided die is rolled twice The 36 equally likely outcomes are shown...

Statistics
1.2K views

Express the confidence interval 88 6 8 3 in interval form

Accounting
1.2K views

Lab Insight: Financial statements are useful for comparing the performance of different companies, but sometimes...

Accounting
1.2K views

Glass Company buys and sells securities which it typically classifies as available for sale. On...

Accounting
1.2K views

r 18 Homework Assignment 6 Saved Agee Storage issued 41 million shares of its $1...

Finance
1.2K views

As a bond analyst at Morgan Stanley Investment Banking, you are performing an analysis on...

Accounting
1.2K views

To expand operations, Aragon Consulting issued 1,450 shares of previously unissued common stock with no...