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				$	2,396,000
Cost of goods sold					1,174,040
Gross profit					1,221,960
Operating expenses
Salaries expense	$	328,252
Depreciation expense		57,504
Rent expense		64,692
Amortization expensesPatents		7,188
Utilities expense		26,356			483,992
					737,968
Gain on sale of equipment					9,584
Net income				$	747,552

Accounts receivable	$	41,350		increase		Accounts payable	$	10,850		decrease
Inventory		16,600		increase		Salaries payable		4,700		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.)