Exercise 12-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $ 1,867,000 914,830 952,170 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 255, 779 Depreciation expense 44,808 Rent expense 50, 409 Amortization expenses-Patents 5,601 Utilities expense 20,537 Gain on sale of equipment Net income 377,134 575,036 7,468 $ 582,504 Accounts receivable $ 34,650 increase Accounts payable $ 13,525 decrease Inventory 14,700 increase Salaries payable 3,650 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.) 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 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