11 The following income statement and additional year-end information is provided. SONAD COMPANY 3 Income Statement pmnm For Year Ended December 31 Sales $ 1,835,000 Cost of goods sold 899,150 Gross profit 935,850 Operating expenses Salaries expense 5 251,395 Depreciation expense 44,040 Rent expense 49,545 Amortization expensesPatents 5,505 Utilities expense 20,185 370,670 565,180 Gain on sale of equipment 7,340 Net income $ 572,520 Accounts receivable $ 33,550 increase Accounts payable $ 14,400 decrease Inventory 38,775 increase Salaries payable 5,900 decrease Prepare the operating activities section ofthe statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. 9 Answer is complete but not entirely correct. Statement of Cash Flows (Partial) Cash ows from operating activities Depreciation expense 6 $ 44,040 a Amortization expensesPatents 0 5,505 9 Gain on sale of equipment 0 (7,340) 9 Increase in Accounts receivable 6 (33,550) 9 Increase in Inventory 0 (38,775) 0 Decrease in Accounts payable 6 (14,400) 0 Decrease in Salaries payable 0 (5,900) 0 Net cash provided by operating activities a $ (50,420)