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 Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 275,918 48,336 54,378 Cash flows from operating activities 6,042 22,154 $ 2,014,000 986,860 1,027,140 406,828 620,312 8,056 $ 628,368 $ 11,200 increase Accounts payable 14,675 increase Salaries payable 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) Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash s Prev $ 13,075 decrease 2,850 decrease 10 of 13 Next >

Exercise 12-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $13,075decrease2,850decrease Prepare the operating activities section of the statement or casn uows usng 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. (Amount indicated with a minus sign.)