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 Income Statement For Year Ended December 31 Sales $ 2,337,000 Cost of goods sold Gross profit 1, 145, 130 1,191,870 Operating expenses Salaries expense $ 320,169 Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income 56,088 63,099 7,011 25,707 472,074 719,796 9,348 $729,144 Accounts receivable Inventory $ 12,400 increase Accounts payable 14,975 increase Salaries payable $ 9,125 decrease 1,800 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amc indicated with a minus sian.) 4 Book Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to 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 Hint Print erences Changes in current operating assets and liabilities