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, 2013 |
| Sales |
|
|
|
$ |
2,484,000 |
|
| Cost of goods sold |
|
|
|
|
1,217,160 |
|
|
|
|
|
|
|
|
| Gross profit |
|
|
|
|
1,266,840 |
|
| Operating expenses |
|
|
|
|
|
|
| Salaries expense |
$ |
340,308 |
|
|
|
|
| Depreciation expense |
|
59,616 |
|
|
|
|
| Rent expense |
|
67,068 |
|
|
|
|
| Amortization expenses-Patents |
|
7,452 |
|
|
|
|
| Utilities expense |
|
27,324 |
|
|
501,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
765,072 |
|
| Gain on sale of equipment |
|
|
|
|
9,936 |
|
|
|
|
|
|
|
|
| Net income |
|
|
|
$ |
775,008 |
|
|
|
|
|
|
|
|
|
| Changes in current asset and current liability accounts for the year that relate to operations follow. |
|
|
|
|
|
|
|
|
| Accounts receivable |
$ |
15,650 |
increase |
Accounts payable |
$ |
13,275 |
decrease |
| Merchandise inventory |
|
39,150 |
increase |
Salaries payable |
|
3,450 |
decrease |
|
Use the direct method to prepare only the cash provided or used by operating activities section of the statement of cash flows for this company. (Amounts to be deducted should be indicated with a minus sign.)