Exercise 12-4 Indirect: Cash flows from operating activities LO P2 20 points eBook The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $1,620,000 Cost of goods sold 793,800 Gross profit 826,200 Operating expenser Salaries expens $221,940 Depreciation expense 38,880 Rent expense 43,740 Amortization expenses-Patents 4,860 Utilities expense 17,820 327,240 498,960 Gain on sale of equipment 6,480 Net income $ 505, 440 Hint Ask Print Accounts receivable Inventory $31,350 Increase 11,950 increase Accounts payable salaries payable $8,050 decrease 5,950 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.) eBook Statement of Cash Flows (partial) Cash flows from operating activities Hins Ask Adjustments to reconcile net income to not cash provided by operating activities Income statement items not affecting cash Print Changes in current operating assets and liabilities