Exercise 12-4 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 Cost of goods sold Gross profit Operating expenses Salaries expense $298,523 Depreciation expense 52,296 Rent expense 58,833 Amortization expenses-Patents 6,537 Utilities expense 23,969 $2,179,000 1,067,710 1,111,290 Gain on sale of equipment Net income 440,158 671,132 8,716 $ 679,848 Accounts receivable Inventory $25,300 increase 14,125 increase Accounts payable Salaries payable $ 9,200 decrease 3,400 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (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