Confused :(

Exercise 12-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $ 1,758,000 861,420 896,580 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 240,846 Depreciation expense 42,192 Rent expense 47,466 Amortization expenses-Patents 5,274 Utilities expense 19,338 Gain on sale of equipment Net income 355,116 541,464 7,032 $ 548, 496 Accounts receivable Inventory $ 31,900 increase Accounts payable 27,550 increase Salaries payable $ 15,125 decrease 4,050 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.) 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 $ 0