Exercise 12-4 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 $218,515 Depreciation expense 38,280 Rent expense 43,065 Amortization expenses-Patents 4,785 Utilities expense 17,545 $1,595, eee 781,550 813,450 Gain on sale of equipment Net income 322, 190 491,260 6, 380 $ 497,640 Accounts receivable Inventory $22,350 increase 30,175 increase Accounts payable Salaries payable $19,5ee decrease 5,800 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 Changes in current operating assets and liabilities