SONAD COMPANY Income Statement

The following income statement and information about changes in noncash current assets and current liabilities are reported.   SONAD COMPANY Income Statement For Year...

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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, 2013

Sales                          $ 2,445,000       

Cost of goods sold  $1,198,050     

Gross profit             $1,246,950       

Operating expenses                                                                                        

Salaries expense $334,965                                                            

Depreciation expense $58,680                                                    

Rent expense $66,015                                                    

Amortization expenses–Patent $7,335                                                  

Utilities expense $26,895     $493,890        

                                                       $753,060        

Gain on sale of equipment $9,780             

 Net income                         $ 762,840            

Changes in current asset and current liability accounts for the year that relate to operations follow.

 Accounts receivable      $45,400 increase                 

Accounts payable            $8,050   decrease

Merchandise inventory                 $37,250 increase                 

Salaries payable                $3,400   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.)

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