Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $255,505 Depreciation expense 44,760 Rent expense 50.355 Amortization expenses-Patents 5,595 Utilities expense 20,515 $1,865,000 912,850 951, 150 Gain on sale of equipment Tiet Income 376,730 574, 420 7.460 $ 581,850 Accounts receivable Inventory $48.900 increase 24,925 Increase Accounts payable Salaries payable $15,25 decrease 4,300 decrease Prepare the operating activities section of the statement of cash flows using the indirect method (Amounts to be deducted should b indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities 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 S 0