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 Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash nces Changes in current operating assets and liabilities $ aw IH 2 of 6 MacBook 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 $243,038 Depreciation expense 42,576 Rent expense 47,898 Amortization expenses-Patents 5,322 Utilities expense 19,514 $1,774,000 869,260 904,740 Gain on sale of equipment Net income 358, 348 546,392 7,096 553,488 Accounts receivable Inventory $37,900 increase 13,775 increase Accounts payable Salaries payable $15,000 decrease 3,800 decrease