ers 9-12 (2 attempts) Timed 90 minutes Saved H. 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 $1,636,000 Cost of goods sold 801, 640 Gross profit 834, 360 Operating expenses Salaries expense $224,132 Depreciation expense 39,264 Rent expense 44,172 Amortization expenses-Patents 4,908 Utilities expense 17,996 330, 472 503,888 Gain on sale of equipment 6,544 Net income $ 510, 432 Accounts receivable Inventory $28,950 increase 10,875 increase Accounts payable Salaries payable $11,925 decrease 4,450 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 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash