Exercise 16-1 (Algo) Indirect: Classifying Cash flows LO C1 Indicate where each item would appear on a statement of cash flows using the indirect method by placing an X in the appropriate column(s) (More than one column may be used.) a. Issued common stock for cash b. Accounts receivable decreased in the year c Purchased treasury stock with cash d Inventory increased in the year e. Accounts payable decreased in the year f Retired bonds payable by issuing stock g Income taxes payable increased in the year h. Sold land in return for cash Sold merchandise to customer for cash Received a cash dividend from investment Statement of Cash Flows Operating Investing Financing Activities Activities Activities Noncash Investing & Financing Activities Not Reported on Statement or in Notes The following income statement and additional year-end information is provided SONAD COMPANY Income Statement For Year Ended December 31 Sales $1,768,000 Cost of goods sold 866,320 Gross profit Operating expenses 901,680 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment $242,216 42,432 47,736 5,304 19,448 357,136 544,544 7,072 Net income $ 551,616 Accounts receivable Inventory $ 19,900 increase Accounts payable 31,800 Increase Salaries payable $ 12,225 decrease 5,050 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.) Statement of Cash Flows (Partial) Cash flows from operating activities Receipts from customers