Exercise 16-4 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 S 1,931,000 Cost of goods sold 946, 190 Gross profit 984,810 Operating expenses Salaries expense $ 264,547 Depreciation expense 46,344 Rent expense 52,137 Amortization expenses-Patents 5, 793 Utilities expense 21,241 390,062 594,748 Gain on sale of equipment 7,224 Net income 602,472 Changes in current asset and current liability accounts for the year that relate to operations follow. Accounts receivable Inventory $ 25, 550 increase 32,225 increase Accounts payable Salarios payable $ 9,600 decrease 3,600 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) ---- Accounts receivable Inventory $ $ 25,550 increase 32,225 increase Accounts payable Salaries payable 9,600 decrease 3,600 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 $ 0