Exercise 12-4 indirect Cash flows from operating activities LO 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 Cost of goods sold Gross profit Operating expenses $2,367,000 1,159,830 1,207,170 Salaries expense Rent expense Amortizatlon expenses-Patents Utilities expense $ 324,279 56,808 63,909 7,101 26,037 478,134 729,036 9,468 $ 738,504 Gain on sale of equipment Net income Changes in current asset and current liability accounts for the year that relate to operations follow. S39,000 increase 34,250 increase Accounts payable Salaries payable $13,300 decrease 3,300 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 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