Question

In: Accounting

The following income statement and information about changes in noncash current assets and current liabilities are...

The following income statement and information about changes in noncash current assets and current liabilities are reported.

SONAD COMPANY
Income Statement
For Year Ended December 31, 2017
Sales $ 2,353,000
Cost of goods sold 1,152,970
Gross profit 1,200,030
Operating expenses
Salaries expense $ 322,361
Depreciation expense 56,472
Rent expense 63,531
Amortization expenses–Patents 7,059
Utilities expense 25,883 475,306
724,724
Gain on sale of equipment 9,412
Net income $ 734,136


Changes in current asset and current liability accounts for the year that relate to operations follow.

Accounts receivable $ 44,750 increase Accounts payable $ 8,450 decrease
Inventory 12,750 increase Salaries payable 3,550 decrease

Required:

Prepare only the cash flows from 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
$0

Solutions

Expert Solution

SONAD COMPANY
Cash Flow Statement (partial)
For year ended 31st December 2017
A. Cash Flows from Operating Activity
Net Income $    7,34,136.00
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Depreciation expense $       56,472.00
Gain on sale of equipment $       (9,412.00)
Patent amortization expense $          7,059.00
Changes in current operating assets and liabilities
Increase in Accounts receivables $     (44,750.00)
Increase in Inventory $     (12,750.00)
Decrease in Accounts Payable $       (8,450.00)
Decrease In salaries payable $       (3,550.00)
Net cash flow from Operating activities $    7,18,755.00

ekkarill92 answered 3 months ago
Next > < Previous

Related Solutions

The following income statement and information about changes in noncash current assets and current liabilities are...
The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 1,515,000 Cost of goods sold 742,350 Gross profit 772,650 Operating expenses Salaries expense $ 207,555 Depreciation expense 36,360 Rent expense 40,905 Amortization expenses–Patents 4,545 Utilities expense 16,665 306,030 466,620 Gain on sale of equipment 6,060 Net income $ 472,680 Changes in current asset and current liability accounts for the year that...
The following income statement and information about changes in noncash current assets and current liabilities are...
The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 2,117,000 Cost of goods sold 1,037,330 Gross profit 1,079,670 Operating expenses Salaries expense $ 290,029 Depreciation expense 50,808 Rent expense 57,159 Amortization expenses–Patents 6,351 Utilities expense 23,287 427,634 652,036 Gain on sale of equipment 8,468 Net income $ 660,504 Changes in current asset and current liability accounts for the year that...
The following income statement and information about changes in noncash current assets and current liabilities are...
The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 2,177,000 Cost of goods sold 1,066,730 Gross profit 1,110,270 Operating expenses Salaries expense $ 298,249 Depreciation expense 52,248 Rent expense 58,779 Amortization expenses–Patents 6,531 Utilities expense 23,947 439,754 670,516 Gain on sale of equipment 8,708 Net income $ 679,224 Changes in current asset and current liability accounts for the year that...
The following account balances for the noncash current assets and current liabilities of Suffolk Company are...
The following account balances for the noncash current assets and current liabilities of Suffolk Company are available: December 31 2017 2016 Accounts receivable $43,260 $34,940 Inventory 29,860 40,010 Prepaid rent 16,550 15,230     Totals $89,670 $90,180 Accounts payable $26,410 $19,020 Income taxes payable    5,730 9,700 Interest payable   14,500 12,250     Totals $46,640 $40,970 Net income for 2017 is $38,690. Depreciation expense is $18,220. Assume that all sales and all purchases are on account. Required: 1. Prepare the Operating Activities section of the...
Following information use in Question NO.5 The following is the information about assets and liabilities of...
Following information use in Question NO.5 The following is the information about assets and liabilities of M/s. Hanish LLC and its partners A, B and C. They are sharing profits 9:6:3 with total capital of OMR 169,000 as on 31.3.2020. Particular OMR Particular OMR Cash             58,500 Bank Loan          52,000 Sundry Debtors             91,000 Bonds          65,000 Stock             32,500 Bills Payable        104,000 Machinery             52,000 Sundry Creditors        130,000 Land             91,000 Bank Overdraft          32,500 Furniture...
Following information use in Question NO.6 The following is the information about assets and liabilities of...
Following information use in Question NO.6 The following is the information about assets and liabilities of M/s. Hanish LLC and its partners A, B and C. They are sharing profits 9:6:3 with total capital of OMR 169,000 as on 31.3.2020. Particular OMR Particular OMR Cash             58,500 Bank Loan          52,000 Sundry Debtors             91,000 Bonds          65,000 Stock             32,500 Bills Payable        104,000 Machinery             52,000 Sundry Creditors        130,000 Land             91,000 Bank Overdraft          32,500 Furniture...
Lansing Company’s 2016 income statement and selected balance sheet data (for current assets and current liabilities)...
Lansing Company’s 2016 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2015 and 2016, follow.    LANSING COMPANY Income Statement For Year Ended December 31, 2016 Sales revenue $ 63,000 Expenses Cost of goods sold 19,000 Depreciation expense 5,000 Salaries expense 9,000 Rent expense 2,000 Insurance expense 1,900 Interest expense 1,900 Utilities expense 1,200 Net income $ 23,000 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2016 2015 Accounts receivable $...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities)...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow. LANSING COMPANY Income Statement For Year Ended December 31, 2017 Sales revenue $ 124,200 Expenses Cost of goods sold 51,000 Depreciation expense 16,500 Salaries expense 27,000 Rent expense 9,900 Insurance expense 4,700 Interest expense 4,500 Utilities expense 3,700 Net income $ 6,900 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2017 2016 Accounts receivable $ 6,500...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities)...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow. LANSING COMPANY Income Statement For Year Ended December 31, 2017 Sales revenue $ 97,200 Expenses Cost of goods sold 42,000 Depreciation expense 12,000 Salaries expense 18,000 Rent expense 9,000 Insurance expense 3,800 Interest expense 3,600 Utilities expense 2,800 Net income $ 6,000 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2017 2016 Accounts receivable $ 5,600...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities)...
Lansing Company’s 2017 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2016 and 2017, follow. LANSING COMPANY Income Statement For Year Ended December 31, 2017 Sales revenue $ 100,200 Expenses Cost of goods sold 43,000 Depreciation expense 12,500 Salaries expense 19,000 Rent expense 9,100 Insurance expense 3,900 Interest expense 3,700 Utilities expense 2,900 Net income $ 6,100 LANSING COMPANY Selected Balance Sheet Accounts At December 31 2017 2016 Accounts receivable $ 5,700...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT