Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and information about changes in noncash current assets and current liabilit SONAD COMPANY Income Statement For Year Ended December 31, 201 Sales cost of goods sold Gross profit Operating expenses $2,288,000 1,121,120 166,880 Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $313,456 54,912 61,776 6,864 25, 168 462,176 04,70 9,152 713, 856 ces Gain on sale of equipment Net income $ Changes in current asset and current liability accounts for the year that relate to operations follow. Accounts receivable Inventory $45,600 increase Accounts payable 31,775 increase Salaries payable 10,075 decrease 2,950 decrease Required: Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect m deducted should be indicated with a minus sign.) Accounts receivable Inventory $45,600 increase Accounts payable 31,775 increase Salaries payable $10,075 decrease 2,950 decrease Required Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts t deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Net income $713,856 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Amortization expense-Patents Gain on sale of equipment 54,912 6,864 (9,152) Changes in current operating assets and liabilities Increase in accounts receivable Decrease in accounts payable Decrease in salaries payable Increase in inventory (10,075) (2.950) (31,775) Net cash provided by operating activities 721,680