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 liabilities are reported. SONAD COMPANY Income Statement For Year Ended 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $2,084,000 1,021,160 1,062,840 Salaries expense Depreciation Rent expense Amortization expenses-Patents Utilities expense $285,508 50,016 56,268 6,252 expense 22,924 420,96B 641,872 Gain on sale of equipment Net income $650, 208 Changes In current asset and current liability accounts for the year that relate to operations follow. Accounts receivable Inventory $35,000 increase Accounts payable 24,775 increase Salaries payable $10,000 decrease 1,900 decrease Required Prepare only the cash flows from 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 C 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