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 $1,690,000 Cost of goods sold 828, 100 Gross profit 861,900 Operating expenses Salaries expense $231,530 Depreciation expense 40,560 Rent expense 45,630 Amortization expenses-Patents 5,070 Utilities expense 18,590 341,380 520,520 Gain on sale of equipment 6,760 Net income $ 527,280 Accounts receivable $41,400 increase Accounts payable $14,700 decrease Inventory 12,175 increase Salaries payable 1,100 decrease Accounts receivable $41,400 increase Accounts payable $14,700 decrease Inventory 12,175 increase Salaries payable 1,100 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 Rows from operating activities Net income 527.280 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 $ 527.280