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The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year...

The following income statement and additional year-end information is provided.

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales $ 1,513,000
Cost of goods sold 741,370
Gross profit 771,630
Operating expenses
Salaries expense $ 207,281
Depreciation expense 36,312
Rent expense 40,851
Amortization expenses—Patents 4,539
Utilities expense 16,643 305,626
466,004
Gain on sale of equipment 6,052
Net income $ 472,056
Accounts receivable $ 18,700 increase Accounts payable $ 12,525 decrease
Inventory 34,225 increase Salaries payable 1,250 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.)

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SONAD COMPANY
Cash Flow Statement
For year ended 31st December
A. Cash Flows from Operating Activity
Net Income $     472,056.00
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Depreciation expense $       36,312.00
Patent amortization expense $          4,539.00
Gain on sale of equipment $       (6,052.00)
Changes in current operating assets and liabilities
Increase in Accounts receivables $     (18,700.00)
Increase in Inventory $     (34,225.00)
Decrease in Accounts Payable $     (12,525.00)
Decrease In salaries payable $       (1,250.00)
Net cash flow from Operating activities $     440,155.00

ekkarill92 answered 2 years ago
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