ACCT 2101 Chapter Notes - Chapter 11: Income Statement, Net Income, Current Liability
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The following income statement and information about changes innoncash current assets and current liabilities are reported. |
SONAD COMPANY Income Statement For Year Ended December 31, 2015 | ||||||
Sales | $ | 2,322,000 | ||||
Cost of goodssold | 1,137,780 | |||||
Gross profit | 1,184,220 | |||||
Operatingexpenses | ||||||
Salaries expense | $ | 318,114 | ||||
Depreciation expense | 55,728 | |||||
Rent expense | 62,694 | |||||
AmortizationexpensesâPatents | 6,966 | |||||
Utilities expense | 25,542 | 469,044 | ||||
715,176 | ||||||
Gain on sale ofequipment | 9,288 | |||||
Net income | $ | 724,464 | ||||
Changes in current asset andcurrent liability accounts for the year that relate to operationsfollow. |
Accountsreceivable | $ | 10,200 | increase | Accountspayable | $ | 8,675 | decrease |
Inventory | 39,100 | increase | Salariespayable | 3,000 | decrease | ||
Required:
Prepare only the cash flows from operating activities section ofthe statement of cash flows using the indirect method.(Amounts to be deducted should be indicated with a minussign.) It has an area on the sheet for "Changes in currentassests and liabilities not sure what goes underthere. |