Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $1,767,000 865,830 901,170 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $242,079 Depreciation expense 42,408 Rent expense 47,709 Amortization expenses-Patents 5,301 Utilities expense 19,437 Gain on sale of equipment Net income 356,934 544,236 7,068 $ 551, 304 Accounts receivable Inventory $29,050 increase 38,100 increase Accounts payable Salaries payable $11,150 decrease 4,950 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