Reference no: EM132599711
Using the following income statement and additional year-end information.
SONAD COMPANY
Income Statement
For Year Ended December 31
Sales $2,120,000
Cost of goods sold 1,038,800
Gross profit 1,081,200
Operating expenses Salaries expense $290,440
Depreciation expense 50,880
Rent expense 57,240
Amortization expenses-Patents 6,360
Utilities expense 23,320 428,240 652,960
Gain on sale of equipment 8,480
Net income $661,440
Accounts receivable $25,950 increase
Accounts payable $10,850 decrease
Inventory 19,050 increase
Salaries payable 5,700 decrease
Question 1: Prepare the operating activities section of the statement of cash flows using the direct method.