Exercise 12-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided 51,963,000 961,870 1,001,130 SONAL COMPANY Income Statement Tor Year Ended December 31 Sales Cost of goods sold GT | Hot it Cperating expenses Salacies expense 5.268,931 Depreciation expense 47.112 Rent exper 53,002 Amortistic expenses-Patents 5,889 Utilities expense 21,593 Cain on sale or equipment Net Income 396526 604,604 7.852 5 612,456 Accounts receivable $ 21,450 Increase Accounts payable $ 10,050 decrease Inventory 34,600 Increase salaries payable 2.650 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.) $ 612,456 Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Amortization expense Patents Gain on sale of equipment 47.112 5,889 (7.852) Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable $ 657,605 Net cash provided by operating activities