Question

The following income statement along with additional year-end information about changes in noncash current assets and current liabilities are reported. $1,828,000 991,000 837,000 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expense-Patents 4,200 Utilities expense 18,125 361,660 475, 340 6,200 $ 481,540 Gain on sale of equipment Net income Additional Year-End Balance Sheet Data Accounts receivable $30,500 increase Inventory 25,000 increase Accounts payable 12,500 decrease Salaries payable 3,500 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.)

Answer 1

Solution

The answer is showing incomplete because of the last line . In the last line you missed to write Net cash flow from operating activities.

Try to delete blank space if possible.

Other than that i dont find anything incomplete.

Full solution is still given below.

Cash Flow Statement (Partial)
A. Cash Flows from Operating Activity
Net Income	$    4,81,540.00
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Depreciation expense	$       44,200.00
Patent amortization expense	$          4,200.00
Gain on sale of equipment	$       (6,200.00)
Changes in current operating assets and liabilities
Increase in Accounts receivables	$     (30,500.00)
Increase in Inventory	$     (25,000.00)
Decrease in Accounts Payable	$     (12,500.00)
Decrease In salaries payable	$       (3,500.00)
Net cash flow from Operating activities	$    4,52,240.00