1 The following income statement and additional year-end Information is provided. SONAD COMPANY Income Statement For Year Ended Deceber 31 Sales $1,640,000 Cost of goods sold 803,60e Gross profit 836,400 Operating expenses Salaries expense $224.680 Depreciation expense 29,360 Rent expense 44,280 Amortization expenses-Patents 4,92e Utilities expense 18.640 331.280 ses, 120 Gain on sale of equipment 6.560 Net Income 5 511.680 515941 Accounts receivable Inventory $49,350 increase 12,625 Increase Accounts payable Salaries payable $12,350 decrease 4.550 decrease Prepare the operating activities section of the statement of cash flows using the indirect method (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statomont items not affecting cash Accounts receivable Inventory $49,350 increase 12,625 increase Accounts payable Salaries payable $12,350 decrease 4,558 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted s indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities