Prepare statement of cashflows using the indirect method.

Choices:

• Amortization expensePatents
• Decrease in accounts payable
• Decrease in accounts receivable
• Decrease in inventory
• Decrease in salaries payable
• Depreciation expense
• Gain on sale of equipment
• Increase in accounts payable
• Increase in accounts receivable
• Increase in inventory
• Increase in salaries payable
• Loss on sale of equipment

1 Exercise 12-4 Indirect: Cash flows from operating activities LO P2 20 points The following income statement and additional year-end information is provided. eBook Hint SONAD COMPANY Income Statement For Year Ended December 31 Sales $2,416,000 Cost of goods sold 1,183, 840 Gross profit 1,232,160 Operating expenses Salaries expense $330,992 Depreciation expense 57,984 Rent expense 65,232 Amortization expenses- Patents 7,248 Utilities expense 26,576 488,032 744, 128 Gain on sale of 9,664 equipment Net income $ 753, 792 Ask Print $13,075 decrease Accounts receivable Inventory Accounts $43,550 increase payable Salaries 22,000 increase payable 4,400 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.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities 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.) Statement of Cash Flows (partial) Cash flows from operating activities dinletmonte to reconcile not income to not noch provided Net income Net loss Changes in current operating assets and liabilities 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.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Net cash provided by financing activities Net cash provided by investing activities Net cash provided by operating activities Net cash used in financing activities Net cash used in investing activities