12 ex 4 SONAD COMPANYIncome StatementFor Year Ended December 31Sales$2,225,ee01,090, 250Cost of goods soldGross profitOperating expensessalaries expense1,134,750$304, 82553,40060, 075Depreciation expenseRent expenseAmortization expenses-Patentsutilities expense6,67524,475449,450685,300Gain on sale of equipment8,900Net income$ 694, 20e$41,650 increase29,875 increaseAccounts payableSalaries payable$15,575 decrease2,050 decreaseAccounts receivableInventoryPrepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should beIndicated with a minus sign.)Answer is not complete.Statement of Cash Flows (partial)Cash flows from operating activitiesNet incomeS694,200Adjustments to reconcile net income to net cash provided by operatingactivitiesIncome statement items not affecting cashDepreciation expense53,400Amortization expense-Patents6,675Changes in current operating assets and liabilitiesIncrease in accounts receivable(41,650)Increase in inventory(29,875)Decrease in accounts payable(15,575)Decrease in salaries payable(2,050)665,125

Computation of the Operating activities section of the statement of cash flows using the indirect…

SONAD COMPANY Income Statement For Year Ended December 31 $2,225,eee 1,e9e, 250 es of goods sold Es profit rating expenses elaries expense epreciation expense ent expense nortization expenses-Patents cilities expense 1,134,75e $304, 825 53,400 68,875 6,675 24,475 449,450 - on sale of equipment 685,300 8,90e income $ 694, 200 $41,65e increase 29,875 increase ACcounts payable salaries payable ounts receivable entory re the operating activitles section of the statement of cash flows ated with a minus sign.) Answer is not complete. Statement of Cash Flows (partial)