1 2 3 4 5 6 Using the following income statement and additional year end information, prepare the operating activities section of the statement of cash flows using the direct method. Use Exhibit 16B.6 on page 591 of the textbook as a guide. SONAD COMPANY Income Statement For Year Ended December 31, 2019 Selected Year-End Balance Sheet Data Accounts Receivable Inventory Accounts Payable 30,500 increase 25,000 increase 12,500 decrease 7 Sales 8 Cost of goods sold 1,828,000 991,000 837,000 9 Gross profit 10 Operating Expenses 11 Salaries expense 245,535 12 Depreciation expense 44,200 13 Rent expense 49,600 14 Amortization expense-Patents 4,200 15 Utilities expense 18,125 361,660 16 475,340 17 Gain on sale of equipment 18 Net income 6,200 481,540 19 20 21 SONAD COMPANY 22 23 24 Statement of Cash Flows (Direct Method) - Operating Activities For Year Ended December 31, 2019 25 Cash flows from operating activities Cash paid for inventory 26 Cash received from customers 27 28 Cash paid for wages 29 30 31 Cash paid for other operating expenses Net cash provided by operating activities Statement of Cash Flows Ratios Salaries Payable 3,500 decrease