Exercise B Direct: Cash flows from operating activities LO P
Using the following income statement and additional yearend information.
SONAD COMPANY
Income Statement
For Year Ended December
Sales $
Cost of goods sold
Gross profit
Operating expenses
Salaries expense $
Depreciation expense
Rent expense
Amortization expensesPatents
Utilities expense
Gain on sale of equipment
Net income $
Accounts receivable $ increase Accounts payable $ decrease
Inventory increase Salaries payable decrease
Prepare the operating activities section of the statement of cash flows using the direct method. Amounts to be deducted should be indicated with a minus sign.
