The following income statement and information about changes in
noncash current assets and current liabilities are
reported.
Sales | $2,408,000 | |
---|---|---|
Cost of goods sold | 1,179,920 | |
Gross profit | 1,228,080 | |
Operating expenses | ||
Salaries expense | $329,896 | |
Depreciation expense | 57,792 | |
Rent expense | 65,016 | |
Amortization expenses–Patents | 7,224 | |
Utilities expense | 26,488 | 486,416 |
741,664 | ||
Gain on sale of equipment | 9,632 | |
Net income | $751,296 | |
Changes in current asset and current liability accounts for the
year that relate to operations follow.
Accounts receivable | $25,700 | increase | Accounts payable | $12,000 | decrease |
Inventory | 37,850 | increase | Salaries payable | 2,100 | 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.)
SONAD Company | |
Cash Flow Statement | |
For Year Ended December 31, 2017 | |
Particulars | Amount |
Cash flow from Operating Activities | |
Net Income | 751,296.00 |
Gain on Sale of equipment | - 9,632.00 |
Amortization expenses–Patents | 7,224.00 |
Depreciation expense | 57,792.00 |
Increase in Accounts receivable | - 25,700.00 |
Increase in Inventory | - 37,850.00 |
Decrease in Accounts payable | - 12,000.00 |
Decrease in Salaries payable | - 2,100.00 |
Net Cash flow from operating activities | 729,030.00 |
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