Exercise 12-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $2,301,000 1,127,490 1,173,510 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $315,237 Depreciation expense 55, 224 Rent expense 62, 127 Amortization expenses-Patents 6,903 Utilities expense 25,311 Gain on sale of equipment Net income 464,802 708, 708 9,204 717,912 $ Accounts receivable Inventory $21,200 increase 27,875 increase Accounts payable Salaries payable $12,600 decrease 5,700 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.) 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 Net income $ 717,912: 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 $ 717,912