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 $1,989,000 Cost of goods sold 974,610 Gross profit 1,014,390 Operating expenses Salaries expense $272,493 Depreciation expense 47,736 Rent expense 53,703 Amortization expenses-Patents -5,967 Utilities expense 21,879 401,778 612,612 Gain on sale of equipment 77956 Net income $ 620,568 Accounts receivable Inventory $20,800 increase 31, 200 increase Accounts payable Salaries payable $ 9,309 decrease 1180 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