Reference no: EM133028105

Question - Using the following income statement and additional year-end information. SONAD COMPANY Income Statement For Year Ended December 31

Sales $2,430,000

Cost of goods sold 1,190,700

Gross profit 1,239,300

Operating expenses Salaries expense $332,910

Depreciation expense 58,320

Rent expense 65,610

Amortization expenses-Patents 7,290

Utilities expense 26,730

490,860 748,440

Gain on sale of equipment 9,720

Net income $758,160

Accounts receivable$41,650 increase

Accounts payable $9,400 decrease

Inventory 20,150 increase

Salaries payable 3,050 decrease.

Required - Prepare the operating activities section of the statement of cash flows using the direct method.