Check my work mode: This shows what is correct or incorrect for the work you have con Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $294,961 Depreciation expense 51,672 Rent expense 58,131 Amortization expenses Patents 6,459 Utilities expense 23,683 $2,153,000 1,054,970 1,098, 030 Gain on sale of equipment Net income 434,906 663, 124 8,612 $ 671,736 Accounts receivable Inventory $42,650 increase 11,125 increase Accounts payable Salaries payable $ 9,675 decrease 1,850 decrease Prepare the operating activities section of the statement of cash flows using the Indirect method (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. Statement of Cash Flows (partial) Cash flows from operating activities Not income $ 671,730 Adjustments to reconcile not income to not cash provided by operating activities Income statement toms not affecting cash Amortization exponse Patents 6459 Depreciation exponse 51 672 Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable OOO (42 650) (11 125) (9.675) (1 050) $ 664 567 Not cash provided by operating activities