The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement Sales For Year Ended December 31 $ 2,466,000 1,208,340 1,257,660 Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 337,842 59,184 66,582 7,398 27,126 498,132 759,528 9,864 $ 769,392 Accounts receivable Inventory $ 40,500 increase Accounts payable 25,375 increase Salaries payable $ 9,125 decrease 2,050 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities

The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement Sales For Year Ended December 31 $ 2,466,000 1,208,340 1,257,660 Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 337,842 59,184 66,582 7,398 27,126 498,132 759,528 9,864 $ 769,392 Accounts receivable Inventory $ 40,500 increase Accounts payable 25,375 increase Salaries payable $ 9,125 decrease 2,050 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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