question archive Using the following income statement and additional year-end information
Using the following income statement and additional year-end information
Subject:AccountingPrice: Bought3
Using the following income statement and additional year-end information. SONAD COMPANYIncome Statement
For Year Ended December 31Sales $2,120,000 Cost of goods sold 1,038,800 Gross profit 1,081,200 Operating expenses Salaries expense$290,440 Depreciation expense 50,880 Rent expense 57,240 Amortization expenses—Patents 6,360 Utilities expense 23,320 428,240 652,960 Gain on sale of equipment 8,480 Net income $661,440
Accounts receivable$25,950 increase Accounts payable$10,850 decreaseInventory 19,050 increase Salaries payable 5,700 decrease
Prepare the operating activities section of the statement of cash flows using the direct method.
