Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $1,690,000 828,100 861,900 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $231,530 Depreciation expense 40,560 Rent expense 45,630 Amortization expenses-Patents 5,070 Utilities expense 18,590 Gain on sale of equipment Net income 341,380 520,520 6,760 $ 527,280 Accounts receivable Inventory $46,000 increase 20,400 increase Accounts payable Salaries payable $14,525 decrease 3,250 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