1 Sales SONAD COMPANY Income Statement For Year Ended December 31 Cost of goods sold 55...

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1 Sales SONAD COMPANY Income Statement For Year Ended December 31 Cost of goods sold 55 points Gross profit $ 1,856,000 909,448 946,560 Operating expenses Salaries expense $254,272 Depreciation expense 44,544 Rent expense 50,112 Amortization expenses-Patents 5,568 Utilities expense 20,416 374,912 571,648 Gain on sale of equipment Net income 7,424 $579,072 Accounts receivable Inventory $ 42,700 increase Accounts payable 38,975 increase Salaries payable $ 15,708 decrease 5,308 decrease Prepare the operating activities section of the statement of cash flows using the indirect method Note: Amounts to be deducted should be indicated with a minus sign. Answer is complete but not entirely correct. Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Amortization expense-Patents Depreciation expense Gain on sale of equipment Changes in current operating assets and lab increase in accounts receivable increase in inventory Decrease in accounts payable Decrease in salaries payable Net cash provided by operating activities 570.072 O 0 44.544 O 5508 O 7424 O 0000 42.700 O 38.975 O 15.700 O 5.300 O Os739.283 Return to questi 1 Sales SONAD COMPANY Income Statement For Year Ended December 31 Cost of goods sold 55 points Gross profit $ 1,856,000 909,448 946,560 Operating expenses Salaries expense $254,272 Depreciation expense 44,544 Rent expense 50,112 Amortization expenses-Patents 5,568 Utilities expense 20,416 374,912 571,648 Gain on sale of equipment Net income 7,424 $579,072 Accounts receivable Inventory $ 42,700 increase Accounts payable 38,975 increase Salaries payable $ 15,708 decrease 5,308 decrease Prepare the operating activities section of the statement of cash flows using the indirect method Note: Amounts to be deducted should be indicated with a minus sign. Answer is complete but not entirely correct. Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Amortization expense-Patents Depreciation expense Gain on sale of equipment Changes in current operating assets and lab increase in accounts receivable increase in inventory Decrease in accounts payable Decrease in salaries payable Net cash provided by operating activities 570.072 O 0 44.544 O 5508 O 7424 O 0000 42.700 O 38.975 O 15.700 O 5.300 O Os739.283 Return to questi