Reference no: EM132569409
Question - The following income statement and additional year-end information is provided.
SONAD COMPANY Income Statement For Year Ended December 31
Sales $2,475,000
Cost of goods sold 1,212,750
Gross profit 1,262,250
Operating expenses Salaries expense $339,075
Depreciation expense 59,400
Rent expense 66,825
Amortization expenses-Patents 7,425
Utilities expense 27,225 499,950 762,300
Gain on sale of equipment 9,900
Net income $772,200
Accounts receivable $19,750 increase
Accounts payable $13,475 decrease
Inventory 22,775 increase
Salaries payable 4,150 decrease
Required - Prepare the operating activities section of the statement of cash flows using the indirect method.