The following income statement and information about changes in

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, 2013

Sales                          $ 2,445,000       

Cost of goods sold  $1,198,050     

Gross profit             $1,246,950       

Operating expenses                                                                                        

Salaries expense $334,965                                                            

Depreciation expense $58,680                                                    

Rent expense $66,015                                                    

Amortization expenses–Patent $7,335                                                  

Utilities expense $26,895     $493,890        

                                                       $753,060        

Gain on sale of equipment $9,780             

 Net income                         $ 762,840            

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

 Accounts receivable      $45,400 increase                 

Accounts payable            $8,050   decrease

Merchandise inventory                 $37,250 increase                 

Salaries payable                $3,400   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.)

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer