SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 266,054 46,608 52,434 5,826 21,362 $ 1,942,000 951,580 990, 420 392,284 598, 136 7,768 $ 605,904 $ 43,850 increase Accounts payable 10,825 increase Salaries payable 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) Changes in current operating assets and liabilities. 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 $ 12,600 decrease 4,900 decrease $ 605,904