Check my wor The following income statement and information about changes in non
ID: 2338830 • Letter: C
Question
Check my wor The following income statement and information about changes in noncash current assets and current liabilities are reported SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $2,135,eee 1,046,15e 1,088,850 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $292,495 51,240 57,645 6,405 23,485 431,270 657,580 8,540 $ 666,120 Gain on sale of equipment Net income Changes in current asset and current liability accounts for the year that relate to operations follow Accounts receivable Inventory $41,300 increase 22,650 increa Accounts payable Salaries payable $13,550 decrease 2,700 decrease seExplanation / Answer
Statement of cash flows ( partial)
(Amount in $)
Cash flows from Operating Activities
Net Income
666,120
Adjustments to reconcile net income to net cash provided
by operating activities:
Income statement items not affecting cash:
Depreciation expenses
51,240
Amortization expenses- patents
6,405
Gain on sale of equipment
(8,540)
Changes in current operating assets and liabilities:
Increase in Accounts receivables
(41,300)
Increase in inventory
22,650
Decrease in Accounts Payable
(13,550)
Decrease in salaries payable
(2,700)
Net cash provided by operating activities
680,325
Statement of cash flows ( partial)
(Amount in $)
Cash flows from Operating Activities
Net Income
666,120
Adjustments to reconcile net income to net cash provided
by operating activities:
Income statement items not affecting cash:
Depreciation expenses
51,240
Amortization expenses- patents
6,405
Gain on sale of equipment
(8,540)
Changes in current operating assets and liabilities:
Increase in Accounts receivables
(41,300)
Increase in inventory
22,650
Decrease in Accounts Payable
(13,550)
Decrease in salaries payable
(2,700)
Net cash provided by operating activities
680,325