Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts...

 

Transcribed Image Text:

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.) Sales Cost of goods sold Gross profit Operating expenses SONAD COMPANY Income Statement For Year Ended December 31 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $32,550 increase 25,150 increase $279,891 49,032 55,161 6,129 22,473 $2,043,000 1,001,070 1,041,930 412,686 629,244 8,172 637,416 Accounts payable Salaries payable $8,850 decrease 5,800 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.) Sales Cost of goods sold Gross profit Operating expenses SONAD COMPANY Income Statement For Year Ended December 31 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $32,550 increase 25,150 increase $279,891 49,032 55,161 6,129 22,473 $2,043,000 1,001,070 1,041,930 412,686 629,244 8,172 637,416 Accounts payable Salaries payable $8,850 decrease 5,800 decrease

Answer rating: 100% (QA)

To prepare the operating activities section of the cash flow statement using the direct method you will need to adjust the revenues and expenses from ... View the full answer