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 $ 2,086,000 Cost of goods sold 1,022,140 Gross profit 1,063,860 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 285,782 50,064 56,322 6,258 22,946 421,372 642,488 8,344 $ 650,832 Accounts receivable Inventory $ 27,350 increase Accounts payable 29,875 increase Salaries payable $ 13,050 decrease 3,000 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: 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