1 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement Book Hint erences Sales For Year Ended December 31 Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment $ 218,652 $ 1,596,000 782,040 813,960 38,304 43,092 4,788 17,556 322,392 491,568 6,384 $ 497,952 $ 35,050 increase Accounts payable. 13,925 increase Salaries payable Net income Accounts receivable Inventory $ 14,125 decrease 2,750 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 statement items not affecting cash