Using the following income statement and additional year-end information, prepare the operating activities section of the statement of cash flows using the indirect method.

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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 expense-Patents Utilities expense. $1,828,000 991,000 837,000 $245,535 44,200 49,600 4,200 18,125 361,660 475,340 Gain on sale of equipment.... 6,200 $ 481,540 Net income Selected Year-End Balance Sheet Data Accounts receivable .. $30,500 increase Inventory.. 25,000 increase Accounts payable .... 12,500 decrease Salaries payable .... 3,500 decrease