Exercise 16-4 (Algo) 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 $ 1,545,000 Cost of goods sold 757,050 Gross profit 787,950 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 211,665 37,080 41,715 4,635. 16,995 312,090 475,860 6,180 $ 482,040 Accounts receivable Inventory $ 22,800 increase Accounts payable 35,275 increase Salaries payable $ 11,175 decrease 3,700 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: 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