Exercise 12-6 Indirect: Cash flow from operations LO P2 Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31. (Amounts to be deducted should be indicated with a minus sign.) 16.66 points Selected Annual Income Statement Data Selected Year-End Balance Sheet Data Net income $400,000 Accounts receivable increase $40,000 Depreciation expense 80,000 Prepaid expenses decrease 12,000 Gain on sale of machinery 20,000 Accounts payable increase 6,000 Wages payable decrease 2,000 eBook Print References Cash flows from operating activities Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Changes in current operating assets and liabilities Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement along with additional year-end information about changes in noncash current assets and current liabilities are reported. 16.66 points eBook $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 expense-Patents 4,200 Utilities expense 18, 125 Print References Gain on sale of equipment Net income 361,660 475, 340 6,200 481,540 $ Additional Year-End Balance Sheet Data Accounts receivable $30,500 increase Inventory 25,000 increase Accounts payable 12,500 decrease Salaries payable 3,500 decrease unts payable 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.)