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 $326,882 Depreciation expense 57, 264 Rent expense 64,422 Amortization expenses-Patents 7,158 Utilities expense 26,246 $2,386,000 1,169,140 1,216,860 Gain on sale of equipment Net income 481,972 734,888 9,544 744, 432 $ Accounts receivable Inventory $29,900 increase 30,575 increase Accounts payable Salaries payable $10,675 decrease 3,050 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.) 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 $ 0