The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,260,000 Cost of goods sold 1,107,400 Gross profit 1,152,600 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 309,620 54,240 61,020 6,780 24,860 456,520 696,080 9,040 $ 705,120 Accounts receivable Inventory $ 38,450 increase Accounts payable 25,825 increase Salaries payable $ 8,850 decrease 2,150 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. 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 income $ 705,120 Accounts receivable Inventory $ 38,450 increase Accounts payable 25,825 increase Salaries payable $ 8,850 decrease 2,150 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. 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 $ The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,260,000 Cost of goods sold 1,107,400 Gross profit 1,152,600 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 309,620 54,240 61,020 6,780 24,860 456,520 696,080 9,040 $ 705,120 Accounts receivable Inventory $ 38,450 increase Accounts payable 25,825 increase Salaries payable $ 8,850 decrease 2,150 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. 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 income $ 705,120 Accounts receivable Inventory $ 38,450 increase Accounts payable 25,825 increase Salaries payable $ 8,850 decrease 2,150 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. 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 $
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Prove that opposite sides of a quadrilateral circumscribing a circle subtend supplementary angles at the centre of the circle.
-
Refer to the data in QS 12-6. Furniture costing $110,000 is sold at its book value in 2009. Acquisitions of furniture total $90,000 cash, on which no depreciation is necessary because it is acquired...
-
A city planner claims that the mean speed of westbound traffic along a road segment during morning peak hours is less than 50 miles per hour. In a random sample of 45 motor vehicles traveling...
-
Which of the following is least likely to be a purpose of a yearly staff appraisal meeting conducted between an information systems auditor and his/her manager? a. To determine the interpersonal...
-
Faber Company, a merchandising firm, reported the following operating results: Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of...
-
Is euroland is a dynamic economic area? The role of money supply 3
-
What are the long-term implications of social change for systems of governance, community resilience, and collective well-being, and how can participatory approaches to social innovation foster...
-
Consider the following differential equation: (1-x) dy dx dy 2x+2y=0 dx given the following initial conditions: y = 2 and dy / dx=1 at x =0. a. Use MATLAB to solve the above differential equation for...
-
1. Compute cost per completed unit for the current month2.Also the company budget cost per completed unit of 16.80. Does the cost per unit calculated for the current month indicated better or worse...
-
A 677-g quantity of a substance is at its melting point of -115.8C in the liquid state. The heat of fusion of ethanol is 1.68 x 105 J/kg, the molecular mass is 36.9 g/mol, and the ideal gas constant...
-
Salem Manufacturing currently uses a plantwide rate based on Direct Labour hours. It has two products, the Header and the Tailer. The Tailer is the more complex product, requiring 1 hour of direct...
-
consider two parallel rectangular conducting plates each of area A = 1.5 m separated by a distance d = 0.25 mm forming a parallel-plate capacitor. The region between the plates contains vacuum and...
-
Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting...
-
Differentiate. y = ln(3x + 1) ln(5x + 1)
-
Presented below is a list of income statement and balance sheet accounts: a. Interest expense b. Land c. Cost of goods sold d. Intangible assets e. Income tax expense f. Inventory g. Revenues h....
-
The Rankine Corporation reported net income of \($10\) million in 2016, and it appears that net income for 2017 will be the same. During 2017, the company made the following expenditures: 1....
-
The following cash flow information was taken from the 2015 annual report for Johnson & Johnson. Compute the missing values in the table (amounts are in millions). Based on this data, how does the...
Study smarter with the SolutionInn App