Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and information about changes in noncash current assets and current liabilities are reported. SONAD COMPANY Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $ 2,243,000 1,099,070 1,143,930 Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expensesPatents Utilities expense $307,291 53,832 60,561 6,729 24,673 453,086 Gain on sale of equipment 690,844 8,972 Net income $ 699,816 Changes in current asset and current liability accounts for the year that relate to operations follow. Accounts receivable Inventory $ 40,250 increase 17,500 increase Accounts payable Salaries payable $ 9,700 decrease 2,150 decrease Required: Prepare only the cash flows from 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