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 $1,793,000 Cost of goods sold 878,570 Gross profit 914,430 Operating expenses Salaries expense $245, 641 Depreciation expense 43,032 Rent expense 48,411 Amortization expenses-Patents 5,379 Utilities expense 19,723 362,186 552, 244 Gain on sale of equipment 7,172 Net income $ 559,416 Accounts receivable Inventory $32,900 increase 36,300 increase Accounts payable Salaries payable $15,100 decrease 4,950 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 $ 0