Exercise 12-4 Indirect: Cash flows from operating activities LO P2

Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $2,300, eee 1,127,eee 1,173,000 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $315, 108 Depreciation expense 55,200 Rent expense 62, 100 Amortization expenses-Patents 6,988 Utilities expense 25, 300 Gain on sale of equipment Net income 464,600 708,400 9, 200 $ 717,600 Check my work Accounts receivable Inventory $34, 55e increase 27,175 increase Accounts payable Salaries payable $10,200 decrease 2,3ee 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