SONAD COMPANY Income Statement For Year Ended December 31 

Sales $ 2,123,000 

Cost of goods sold 1,040,270 

Gross profit 1,082,730 

Operating expenses 

Salaries expense $ 290,851 

Depreciation expense 50,952 

Rent expense 57,321 

Amortization expenses—Patents 6,369 

Utilities expense 23,353 

Gain on sale of equipment 8,492 

Net income $ 662,376

 Accounts receivable $ 27,750 increase 

Accounts payable $ 15,725 decrease 

Inventory 24,000 increase 

Salaries payable 5,050 decrease 

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

Answer rating: 100% (QA)

To prepare the operating activities section of the statement of cash flows using the direct method w... View the full answer