Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and...
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Accounting
Exercise 12-4 Indirect: Cash flows from operating activities LO P2
The following income statement and additional year-end information is provided.
SONAD COMPANY Income Statement For Year Ended December 31
Sales
$
2,396,000
Cost of goods sold
1,174,040
Gross profit
1,221,960
Operating expenses
Salaries expense
$
328,252
Depreciation expense
57,504
Rent expense
64,692
Amortization expensesPatents
7,188
Utilities expense
26,356
483,992
737,968
Gain on sale of equipment
9,584
Net income
$
747,552
Accounts receivable
$
41,350
increase
Accounts payable
$
10,850
decrease
Inventory
16,600
increase
Salaries payable
4,700
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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