Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and information about changes in noncash current assets and current liabilities are reported SONAD COMPANY Income Statement For Year Ended December 31, 2017 Sales $2,499,000 1,224,510 1,274,490 Cost of goods sold Gross profit Operating expenses Salaries expense $342,363 59,976 67,473 Depreciation expense Rent expense Amortization expenses-Patents Utilities expense 7,497 27,489 504,798 769,692 Gain on sale of equipment 9,996 Net income 779,688 Changes in current asset and current liability accounts for the year that relate to perations follow Accounts receivable Inventory $33,950 increase 19,475 inerease Accounts payable Salaries payable $15,850 decrease 4.750 decrease Required: Prepare only the cash flows from 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