Step 1: Use the identity for square of sine and cosine.
We know the identity:
\[
(\sin A + \cos A)^2 = \sin^2 A + \cos^2 A + 2 \sin A \cos A
\]
Step 2: Substitute the given value.
It is given that \( \sin A + \cos A = \sqrt{2} \). Squaring both sides, we get:
\[
(\sqrt{2})^2 = \sin^2 A + \cos^2 A + 2 \sin A \cos A
\]
\[
2 = 1 + 2 \sin A \cos A
\]
(Since \( \sin^2 A + \cos^2 A = 1 \))
Step 3: Solve for \( \sin A \cos A \).
\[
2 \sin A \cos A = 2 - 1 = 1
\]
\[
\sin A \cos A = \frac{1}{2}
\]