$1,656,000 811,440 844,560 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $226,872 Depreciation expense 39,744 Rent expense 44,712 Amortization expenses-Patents 4,968 Utilities expense 18,216 Gain on sale of equipment Net income 334,512 510,048 6,624 $ 516,672 Accounts receivable Inventory $39,400 increase 26,925 increase Accounts payable Salaries payable $11,875 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