he following income statement and additional year-end
information is provided.
SONAD COMPANY Income Statement For Year Ended December 31 |
||||||
Sales | $ | 2,428,000 | ||||
Cost of goods sold | 1,189,720 | |||||
Gross profit | 1,238,280 | |||||
Operating expenses | ||||||
Salaries expense | $ | 332,636 | ||||
Depreciation expense | 58,272 | |||||
Rent expense | 65,556 | |||||
Amortization expenses—Patents | 7,284 | |||||
Utilities expense | 26,708 | 490,456 | ||||
747,824 | ||||||
Gain on sale of equipment | 9,712 | |||||
Net income | $ | 757,536 | ||||
Accounts receivable | $ | 26,100 | increase | Accounts payable | $ | 9,750 | decrease | |||
Inventory | 19,175 | increase | Salaries payable | 2,950 | decrease | |||||
Prepare the operating activities section of the statement of cash
flows using the indirect method. (Amounts to be
deducted should be indicated with a minus sign.)
Question 3 of 10 Total 3
Solution
SONAD COMPANY | ||
Cash Flow Statement | ||
For year ended 31st December 2017 | ||
Cash Flows from Operating Activity | ||
Net Income | $ 757,536.00 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Income statement items not affecting cash | ||
Depreciation expense | $ 58,272.00 | |
Patent amortization expense | $ 7,284.00 | |
Gain on sale of equipment | $ (9,712.00) | |
Changes in current operating assets and liabilities | ||
Increase in Accounts receivables | $ (26,100.00) | |
Increase in Inventory | $ (19,175.00) | |
Decrease in Accounts Payable | $ (9,750.00) | |
Decrease In salaries payable | $ (2,950.00) | |
Net cash flow from Operating activities | $ 755,405.00 |
.General notes for cash flow
Cash is increased when Current liability increase or Current asset
Decrease.
Cash is Decreased when Current liability Decrease or Current asset
Increase.
Depreciation or loss on sale of any asset is a non cash expense
hence it will be added to net income to get operating cash
Profit on sale of asset or investment is a non cash profit and
hence will be deducted from operating income.
he following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year...
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 $2,008,000 983,920 1,024,080 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $275,096 48,192 54,216 Depreciation expense Rent expense Amortization expenses-Patents Utilities expense 6,024 22,088 405,616 618,464 Gain on sale of equipment 8,032 $ 626,496 Net income $8,100 decrease 2,650 decrease Accounts payable Accounts receivable $40, 300 increase 25,275 increase Salaries payable Inventory Prepare the operating activities section of...
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $245,535 Depreciation expense Rent expense 49,600 Amortization expenses-Patents 4,200 Utilities expense $1,828,000 991,800 837,000 44,20€ 18,125 361,660 475, 340 6.200 Gain on sale of equipment Net income $ 481, 540 Accounts receivable Inventory $30, 500 increase 25,900 increase Accounts payable salaries payable $12,500 decrease 3,508 decrease Prepare the operating activities...
The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 270,164 Depreciation expense 47,328 Rent expense 53, 244 Amortization expenses-Patents 5,916 Utilities expense 21,692 $1,972,000 966,280 1,005,720 Gain on sale of equipment Net income 398,344 607,376 7,888 $ 615,264 Accounts receivable Inventory $10,600 increase 13,825 increase Accounts payable salaries payable $13,350 decrease 5,650 decrease Prepare the operating activities section...
Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 $2,428,000 1,189,720 1,238,280 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense $332,636 58,272 65,556 7,284 Rent expense Amortization expenses-Patents Utilities expense 26,708 490,456 747,824 Gain on sale of equipment 9,712 $ 757,536 Net income $10,100 increase 11,650 increase Accounts payable Salaries payable Accounts receivable $11,800 decrease...
Using the following income statement and additional year-end information. $2,479,000 1,214,710 1,264,290 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $339,623 Depreciation expense 59,496 Rent expense 66,933 Amortization expenses-Patents 7,437 Utilities expense 27,269 500, 758 763,532 9,916 773,448 Gain on sale of equipment Net income $ Accounts receivable Inventory $19,000 increase 13,375 increase Accounts payable salaries payable $14,625 decrease 5,000 decrease Prepare the operating activities section of the...
The following income statement and additional year-end information is provided. Sints SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $274,959 Depreciation expense 48,168 Rent expense 54,189 Amortization expenses-Patents 6,021 Utilities expense 22,077 $2,007,000 983, 430 1,023,570 Skipped eBook References Gain on sale of equipment Net income 405,414 618, 156 8,028 626,184 $ Accounts receivable Inventory $40,650 increase 39,925 increase Accounts payable Salaries payable $19,900 decrease 2,680 decrease Prepare...
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...
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...
3 The following income statement and additional year-end information is provided. 9.09 points $1,655,000 810,950 844,850 eBook SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $226,735 Depreciation expense 39,720 Rent expense 44,685 Amortization expenses-Patents 4,965 Utilities expense 18,205 Gain on sale of equipment Net income Hint Print References 334,310 509,740 6,620 $ 516,360 Accounts receivable Inventory $28,000 increase 18,775 increase Accounts payable Salaries payable $14,600 decrease 1,100 decrease...
Check my work 6 The following income statement along with additional year-end information about changes in noncash current assets and current liabilities are reported. eBook SONAD COMPANY Income Statement For Year Ended December 31 Sales Coat of goods sold Gross profit Operating expenses Salaries expense $222,625 Depreciation expense 39,000 Rent expense 43,875 Amortization expenses-Patents 4,875 Utilities expense 17,875 $1,625,000 796,250 828,750 Gain on sale of equipment Net income 328,250 500,500 6,500 $ 507,000 Additional Year-End Balance Sheet Data Accounts receivable...