or Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $2,253,000 1,103,970 1,149,030 $308,661 54,072 60,831 6,759 24,783 455,106 693,924 9,012 Gain on sale of equipment Net income 2$ 702,936 $21,050 increase 35,000 increase Accounts receivable Accounts payable Salaries payable $13,775 decrease Inventory 4,700 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should indicated with a minus sign.) Statement of Cash Flows (Partial) Cash flows from operating activities 24 308,661 Salaries expense 69,831 Rent expense 24,783 Utilities expense
or Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $2,253,000 1,103,970 1,149,030 $308,661 54,072 60,831 6,759 24,783 455,106 693,924 9,012 Gain on sale of equipment Net income 2$ 702,936 $21,050 increase 35,000 increase Accounts receivable Accounts payable Salaries payable $13,775 decrease Inventory 4,700 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should indicated with a minus sign.) Statement of Cash Flows (Partial) Cash flows from operating activities 24 308,661 Salaries expense 69,831 Rent expense 24,783 Utilities expense
Chapter10: Inventory
Section: Chapter Questions
Problem 4PB: Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20,...
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Can you please check my work
Transcribed Image Text:SONAD COMPANY
Income Statement
For Year Ended December 31
Sales
$2,253,000
1,103,970
1,149,030
Cost of goods sold
Gross profit
Operating expenses
Salaries expense
Depreciation expense
Rent expense
Amortization expenses-Patents
Utilities expense
$308,661
54,072
60,831
6,759
24,783
455,106
693,924
9,012
Gain on sale of equipment
Net income
702,936
$21,050 increase
35,000 increase
Accounts payable
Salaries payable
$13,775 decrease
4,700 decrease
Accounts receivable
Inventory
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.)
Statement of Cash Flows (Partial)
Cash flows from operating activities
308,661
Salaries expense
69,831
Rent expense
24,783
Utilities expense
%24
Expert Solution
Step 1
The Statement of Cash Flows indirect method begins with Net Income, then adjusts for non-cash items and changes in current assets and current liabilities to arrive at the Cash Flow from Operations. It is generally easier to prepare than the Statement of Cash Flows direct method, which lists all receipts and payments of cash by individual source.
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