Ch. 12 hw6 Saved Help Save & Exit Check my 2 Exercise 12-4 Indirect: Cash flows
ID: 2538081 • Letter: C
Question
Ch. 12 hw6 Saved Help Save & Exit Check my 2 Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and information about changes in noncash current assets and current liabilities are reporte 10 points SONAD COMPANY Income Statement For Year Ended December 31, 2017 eBook Hint Print References Sales Cost of goods sold Gross profit Operating expenses $1,828,000 991,000 837,000 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $245,535 44,200 49, 600 4,200 18, 125 361,660 475,340 6,200 $ 481,540 Gain on sale of equipment Net income Changes in current asset and current liability accounts for the year that relate to operations follow.Explanation / Answer
Answer
Cash Flow Statement
Detail
Net
Cash Flow from Operating Activities
Net Income before tax
481,540
Add: Non-Cash and Non-Operating Expenses
Income Statement items not affecting Cash
Depreciation
44,200
Amortization Expense- Patents
4,200
Gain on sale of Equipment
(6,200)
Changes in Current Operating Assets and Liabilities
Increase in Accounts receivable
(30,500)
Increase in Inventory
(25,000)
Decrease in Salaries Payable
(3,500)
Decrease in Accounts Payable
(12,500)
(29,300)
Cash Flow from Operating Activities
452,240
Cash Flow Statement
Detail
Net
Cash Flow from Operating Activities
Net Income before tax
481,540
Add: Non-Cash and Non-Operating Expenses
Income Statement items not affecting Cash
Depreciation
44,200
Amortization Expense- Patents
4,200
Gain on sale of Equipment
(6,200)
Changes in Current Operating Assets and Liabilities
Increase in Accounts receivable
(30,500)
Increase in Inventory
(25,000)
Decrease in Salaries Payable
(3,500)
Decrease in Accounts Payable
(12,500)
(29,300)
Cash Flow from Operating Activities
452,240