2 6 Exercise 12-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY points Income Statement For Year Ended December 31 Sales $ 1,733,000 allook Cost of goods sold 849,170 Grass profit 883,830 Hint Operating expenses Peyt Meferences Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory Prepare the operating activities Indicated with a minus sign.) Cash flows from natin and $ 237,421 41,592 46,791 5,199 19,063 350,066 533,764 6,932 $540,696 $ 11,250 increase Accounts payable 29,975 increase Salaries payable. $ 15,150 decrease 5,600 decrease section of the statement of cash flows using the Indirect method. (Amounts to be deducted should be Statement of Cash Flows (pertal) Chea ences wet income Accounts receivable Inventory $ 11,250 increase Accounts payable 29,975 increase Salaries payable $ 15,150 decrease 5,600 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.) Cash flows from operating activities Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and labilities $ Check m