Question

Return to question Using the following income statement and additional year-end information. 16.7 points $2,021,000 990,290 1,030, 710 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $276,877 Depreciation expense 48,504 Rent expense 54,567 Amortization expenses-Patents 6,063 Utilities expense 22,231 Gain on sale of equipment Net income 408,242 622,468 8,084 $ 630,552 Accounts receivable Inventory $19, 150 increase 30,050 increase Accounts payable salaries payable $ 9,425 decrease 1,950 decrease 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.) Answer is complete but not entirely correct. Statement of Cash Flows (Partial) Cash flows from operating activities Depreciation expense Gain on sale of equipment Increase in Accounts receivable Increase in Inventory Amortization expenses-Patents Decrease in Accounts payable Decrease in Salaries payable 48,504 X (8,084) (19,150) ► (30,050) 6,063 X (9,425) ► (1,950) ► Net cash provided by operating activities $ (14,092)

Answer 1

Cash flow from operating activities
Cash received from customer (2021000-19150)	2001850
Cash paid to supplier (990290+30050+9425)	-1029765
Cash paid for salaries (276877+1950)	-278827
Cash paid for rent	-54567
Cash paid for utilities	-22231
Net cash flow from operating activities	616460