The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year...

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The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,828,000 Cost of goods sold 991,000 837,000 Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 245,535 44,200 49,600 4,200 18,125 361,660 475,340 6,200 $ 481,540 $ 30,500 increase Accounts payable 25,000 increase Salaries payable Accounts receivable Inventory $ 12,500 decrease 3,500 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. Answer is not complete. Statement of Cash Flows (Partial) Cash flows from operating activities Depreciation expense $ 44,200 x Amortization expenses-Patents 4,200 Increase in Accounts receivable (30,500) Increase in Inventory (25,000) Decrease in Accounts payable 12,500 Decrease in Salaries payable 35,000 Gain on sale of equipment 6,200 46,600 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,828,000 Cost of goods sold 991,000 837,000 Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 245,535 44,200 49,600 4,200 18,125 361,660 475,340 6,200 $ 481,540 $ 30,500 increase Accounts payable 25,000 increase Salaries payable Accounts receivable Inventory $ 12,500 decrease 3,500 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. Answer is not complete. Statement of Cash Flows (Partial) Cash flows from operating activities Depreciation expense $ 44,200 x Amortization expenses-Patents 4,200 Increase in Accounts receivable (30,500) Increase in Inventory (25,000) Decrease in Accounts payable 12,500 Decrease in Salaries payable 35,000 Gain on sale of equipment 6,200 46,600

Answer rating: 100% (QA)

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