Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $2,455,000 1,202,950 1,252,050 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $336,335 Depreciation expense 58,920 Rent expense 66,285 Amortization expenses-Patents 7,365 Utilities expense 27,005 Gain on sale of equipment Net income 495,910 756, 140 9,820 765,960 $ Accounts receivable Inventory $43,600 increase 21,950 increase Accounts payable Salaries payable armes payable $8,825 decrease $ 8,825 decrease 5,700 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.) 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