The following income statement and information about changes

The following income statement and information about changes in noncash current assets and current liabilities are reported. Income Statement For Year Ended 2017 Sales Cost of goods sold Gross profit Operating expenses $2, 306, 000 1,129, 940 1, 176, 060 $315, 922 55,344 62, 262 6, 918 25, 366 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense 465,812 710, 248 9, 224 719,472 Gain on sale of equipment Net income Changes in current asset and current liability accounts for the year that relate to operations follow Accounts receivable$35, 650 increase Accounts payable$14, 05o decrease 5, 750 decrease Inventory 17,325 increase Salaries payable Required: Prev 1 of 3 Next >

Solution

Statement of Cash Flows (partial) Cash flows from operating activities Net income 719472 Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation expense 55344 Amortization expenses-patents 6918 Gain on sale of equipment -9224 Changes in current operating assets and liabilities: Increase in accounts receivable -35650 Increase in inventory -17325 Decrease in accounts payable -14050 Decrease in salaries payable -5750 Net cash provided by operating activities $ 699735