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Exercise 16-18B Direct: Cash flows from operating activities LO P5 Using the...

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Accounting

Exercise 16-18B Direct: Cash flows from operating activities LO P5
Using the following income statement and additional year-end information.
SONAD COMPANY
Income Statement
For Year Ended December 31
Sales $ 1,828,000
Cost of goods sold 991,000
Gross profit 837,000
Operating expenses
Salaries expense $ 245,535
Depreciation expense 44,200
Rent expense 49,600
Amortization expensesPatents 4,200
Utilities expense 18,125361,660
475,340
Gain on sale of equipment 6,200
Net income $ 481,540
Accounts receivable $ 30,500 increase Accounts payable $ 12,500 decrease
Inventory 25,000 increase Salaries payable 3,500 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.)

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