The following income statement and information about changes in noncash current assets and current liabilities...
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Accounting
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, 2015
Sales
$
2,322,000
Cost of goods sold
1,137,780
Gross profit
1,184,220
Operating expenses
Salaries expense
$
318,114
Depreciation expense
55,728
Rent expense
62,694
Amortization expensesPatents
6,966
Utilities expense
25,542
469,044
715,176
Gain on sale of equipment
9,288
Net income
$
724,464
Changes in current asset and current liability accounts for the year that relate to operations follow.
Accounts receivable
$
10,200
increase
Accounts payable
$
8,675
decrease
Inventory
39,100
increase
Salaries payable
3,000
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.)
It has an area on the sheet for "Changes in current assests and liabilities not sure what goes under there.
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