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 ook Cost of goods sold Gross profit Operating expenses Salaries expense nt Depreciation expense Rent expense Amortization expenses-Patents Utilities expense int Gain on sale of equipment Net income nces $2,150,000 1,053,500 1,096,500 $294,550 51,600 58,050 6,450 23,658 434,308 662,200 8.600 $ 670,800 Accounts receivable Inventory $17,250 increase 18,850 increase Accounts payable Salaries payable $12,880 decrease 2,050 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.) Ch es Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Amortization expense-Patents Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable Net cash provided by operating activities $