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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 $ 2,117,000
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 relate to operations follow.

Accounts receivable $ 33,500 increase Accounts payable $ 10,500 decrease
Inventory 39,625 increase Salaries payable 5,700 decrease

Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method.

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

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Expert Solution

ekkarill92 answered 1 year ago
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