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 $ 2,007,000 1983,430 1,023,570 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment $274,959 48,168 54,189 6,021 22,077 405,414 618,156 8,028 Net income $ 626,184 Accounts receivable Inventory $ 17,450 increase Accounts payable 14,625 increase Salaries payable $ 15,950 decrease 5.000 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