Exercise 16-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end Information is provided. $1.815,000 889,350 925,650 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $248,655 Depreciation expense 43,560 Rent expense 49,005 Amortization expenses-Patents 5,445 Utilities expense 19,965 Gain on sale of equipment Net Income 366.630 559,020 7,260 $566,280 Accounts receivable Inventory $40,150 increase 31.700 Increase Accounts payable salaries payable $15,600 decrease 2,500 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 reconcle net income to net cash provided by operating activities Income statement items not affecting cash Accounts receivable Inventory $40,150 increase 31,700 increase Accounts payable Salaries payable $15,600 decrease 2,500 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 not cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities