The following income statement and information about changes in noncash current

Question

The following income statement and information about changes in noncash current assets a liabilities are reported SONAD COMPANY Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $2,261,000 1,107,890 1,153,110 Gross proft Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $309,757 54,264 61,047 6,783 24,871 456,722 696,388 9,044 Gain on sale of equipment Net income $ 705,432 Changes in current asset and current liability accounts for the year that relate to operations Accounts receivable$ 13250 increase Accounts payable S 12600 decreas Inventory 10,400 increase Salaries payable 1,550 decreas Required: Prepare only the cash flows from operating activities section of the statement of cash flows ndirect method (Amounts to be deducted should be indicated with a minus sign.)

Explanation / Answer

SONAD COMPANY For Year Ended Dec 31, 2015 Statement of Cash Flows (Partial) Cash Flow from Operating Activities Net Income 705432 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Gain on Sales of Equipment -9044 Amoritization Expense-Patents 6783 Depreciation Expense 54264 Cash Flow from Operating Activities before Working Capital Changes 757435 Changes in Current Operating Assets and Liabilities: Increase In Account Recievable -13250 Increase In Inventory -10400 Decrease In Account Payable -12600 Decrease In Salaries Payable -1550 Cash Flow from Operating Activities 719635

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