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Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end Information is provided. ok SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $382, 222 Depreciation expense 52,944 Rent expense 59,562 Amortization expenses-Patents 6,618 Utilities expense 24, 266 $2,206,000 1,080,940 1,125,060 Gain on sale of equipment Net income 445, 612 679,448 8,824 $ 688,272 Accounts receivable Inventory $38,450 increase 29, 150 increase Accounts payable Salaries payable $12,375 decrease 3,808 decrease Prepare the operating activities section of the statement of cash flows using Indicated with a minus slgn.) 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