Check my wor The following income statement and information about changes in non
ID: 2338880 • 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) 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 expense 51,240 Amortization expense—Patents 6,405 Gain on sale of equipment -8,540 Changes in current operating assets and liabilities Increase in accounts receivable -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 $635,025