Required Prepare only the cash flows from operating activiti

Required Prepare only the cash flows from operating activities section of the statement deducted should be Indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities

Solution

SONAD COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities: Net income $764,400 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense $58,800 Amortization expenses - patent $7,350 Gain on sale of equipment -$9,800 Changes in current operating assets and liabilities Accounts receivable increase -$11,400 Inventory increase -$19,925 Accounts payable decrease -$10,375 Salaries payable decrease -$3,650 Net cash provided by operating activities $775,400