Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. $1,828,000 991,000 837,000 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses-Patents 4,200 Utilities expense 18,125 Gain on sale of equipment Net income 361,660 475,340 6,200 481,540 $ Accounts receivable Inventory $30,500 increase 25,000 increase Accounts payable Salaries payable $12,500 decrease 3,500 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Am indicated with a minus sign.) Assignment Seved Check my work mode: This shows what is correct or incorrect for the work $1,828,000 991,000 837,000 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses-Patents 4,200 Utilities expense 18,125 361,660 475, 340 6,200 481,540 Gain on sale of equipment Net income $ Accounts receivable Inventory $30,500 increase 25,000 increase Accounts payable Salaries payable $12,500 decrease 3,500 decrease Prepare the operating activities section of the statement of cash flows using the indirect method.( indicated with a minus sign.) * Answer is not complete. Statement of Cash Flows (partial) Cash flows from operating activities Net income $ 481,540 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 44,200 Gain on sale of equipment (6,200) Increase in inventory Changes in current operating assets and liabilities Decrease in accounts payable Decrease in salaries payable (12,500) (3,500)