o Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. Book $2,113,000 1,035, 370 1,077,630 tint SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 289,481 Depreciation expense 50,712 Rent expense 57,051 Amortization expenses-Patents 6,339 Utilities expense 23, 243 Gain on sale of equipment Net income Print erences 426,826 650,804 8,452 $ 659, 256 Accounts receivable Inventory $41,400 increase 14,075 increase Accounts payable Salaries payable $10,300 decrease 3,100 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 Net Income Adjustments to reconcile net income to not cash provided by operating activities Income statement items not affecting cash Depreciation expense Amortization expense-Patents Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable Net cash provided by operating activities 0