Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $1,846,000 904,540 941,460 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $252,902 Depreciation expense 44,304 Rent expense 49,842 Amortization expenses-Patents 5,538 Utilities expense 20,306 Gain on sale of equipment Net income 372,892 568,568 7,384 575,952 $ Accounts receivable Inventory $14,200 increase 21,025 increase Accounts payable Salaries payable $ 9,625 decrease 2,600 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.) 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 net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $