Exercise 12-4 Indirect: Cash flows from operating activities LO P2 ch The following income statement along with additional year-end information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $245,535 Depreciation expense 44,200 Rent expense 49,600 4,200 Amortization expense-Patents 18,125 Utilities expense $1,828,000 991,000 837,090 361,660 475, 340 6,200 $ 481,540 Gain on sale of equipment Net income Additional Year-End Balance Sheet Data Accounts receivable $38,500 Increase Inventory 25,000 increase Accounts payable 12,500 decrease Salaries payable 3,500 decrease Next