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 $292,495 Depreciation expense 51,240 Rent expense 57,645 Amortization expenses-Patents 6,405 Utilities expense 23,485 $2,135,000 1,046,150 1,088, 850 Gain on sale of equipment Net income 431, 270 657, 580 8,540 $ 666,120 Accounts receivable Inventory $49,950 increase 33,050 increase Accounts payable Salaries payable $13, 600 decrease 4,700 decrease Prepare the ing 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