Exercise 12-4 (Algo) 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 $ 1,723,000 Cost of goods sold 844,270 878,730 Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 236,051 41,352 46,521 5,169 18,953 348,046 530,684 6,892 $ 537,576 Accounts receivable Inventory $ 32,300 increase Accounts payable 32,350 increase Salaries payable $ 9,850 decrease 4,900 decrease Prepare the operating activities section of the statement of cash flows using the indirect method Note: 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