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, 2017
Sales				$	2,029,000
Cost of goods sold					994,210
Gross profit					1,034,790
Operating expenses
Salaries expense	$	277,973
Depreciation expense		48,696
Rent expense		54,783
Amortization expensesPatents		6,087
Utilities expense		22,319			409,858
					624,932
Gain on sale of equipment					8,116
Net income				$	633,048

Changes in current asset and current liability accounts for the year that relate to operations follow.

Accounts receivable	$	38,600		increase		Accounts payable	$	15,550		decrease
Inventory		16,000		increase		Salaries payable		2,650		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.)