Exercise 16-4 Indirect: Cash flows from operating activities P2 Using the following income statement and additional year-end information, prepare the operating activities section of the statement of cash flows using the indirect method. SOMAD COMPANY Income Statement For Year Ended December 31 $1,828,000 991,000 837.000 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense. Amortization expense-Patents Utilities experte Gain on sale of equipment Not income $245,535 44,200 49,600 4.200 18,125 361,660 475,340 6.200 481,540 Selected Year-End Balance Sheet Data Accounts receivable.. $30,500 increase Inventory 25,000 increase Accounts payable 12.500 decrease Salaries payable 3.500 decrease