Exercise 12-4 Indirect: Cash flows from operating activittles LO P2 The followin

Question

Exercise 12-4 Indirect: Cash flows from operating activittles LO P2 The following income statement and information about changes in noncash current assets liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 201 Sales Cost of goods sold $2,261,000 1,107,890 ross profit 1,153,110 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $309,757 54,264 61,047 6,783 24,871456,722 696,388 9,044 Gain on sale of equipment Net income S 705.432 Changes in current asset and current liability accounts for the year that relate to operations Accounts receivable$13 250 increase Accounts payable $12,600 decreas 1,550 decrea inventory 10.400 increase Salaries payable

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statement of cash flows (Partial) Cash flows from operating activities         705,432.00 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Gain on sale of equipment           (9,044.00) Amortization expense - Patents              6,783.00 Depreciation expense           54,264.00 Change in Current operating assets and liabilities Increase in account receivable         (13,250.00) Increase in inventory         (10,400.00) Decrease in accounts payable         (12,600.00) Decrease in salaries payable           (1,550.00) Net cash provided by operating activities         719,635.00 Your answer is absolutely correct.Issue is you have summed up Net income and adjustments and done the sum again while computing cash provided by operating activities

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