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 $ 2,321,000 Cost of goods sold 1,137,290 Gross profit 1,183, 710 Operating expenses Salaries expense $ 317,977 Depreciation expense 55,704 Rent expense 62,667 Amortization expenses-Patents 6,963 Utilities expense 25,531 468, 842 714,868 Gain on sale of equipment 9,284 Net income $ 724,152 es Accounts receivable $ 38,850 increase Accounts payable $ 11,725 decrease Inventory 32,375 increase Salaries payable 5,650 decrease 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 Prepare the operating activities section of the statement of cash flows using the indirect method. (Amo 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 $ 0