Solution-Prepare the cash flows from operating activities

Prepare the cash flows from operating activities section

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Question - 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		$1,954,000
Cost of goods sold		957,460
Gross profit		996,540
Operating expenses
Salaries expense	$267,698
Depreciation expense	46,896
Rent expense	52,758
Amortization expenses-Patents	5,862
Utilities expense	21,494	394,708
		601,832
Gain on sale of equipment		7,816
Net income		$609,648

Changes in current asset and current liability accounts for the year that relate to operations follow.

Accounts receivable	$45,650 increase	Accounts payable	$13,600 decrease
Inventory	29,475 increase	Salaries payable	2,800 decrease

Required: Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method.

Reference no: EM132254676

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Prepare the cash flows from operating activities section

Reference no: EM132254676

Reference no: EM132254676

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