Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement along with additional year-end information about changes in noncash current assets and current liabilities are reported. $1,511,000 740, 390 770, 610 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $207,007 Depreciation expense 36,264 Rent expense 40,797 Amortization expense-Patents 4,533 Utilities expense 16, 621 305,222 465,388 6,044 471, 432 Gain on sale of equipment Net income $ Additional Year-End Balance Sheet Data Accounts receivable $19,100 increase Inventory 17,175 increase Accounts payable 9,050 decrease Salaries payable 4,100 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