$1,668,000 817,320 850,680 Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $228,516 Depreciation expense 40,032 Rent expense 45,036 Amortization expenses-Patents 5,004 Utilities expense 18,348 336,936 513,744 6,672 $ 520,416 Gain on sale of equipment Net Income Accounts receivable Inventory $13,450 increase 31, 625 Increase Accounts payable Salaries payable $14,050 decrease 3.900 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (Partial) Cash flows from operating activities Receipts from customers Cost of goods sold Net cash provided by operating activities Accounts receivable Inventory $13,450 increase 31,825 increase Accounts payable Salarios payable $14,050 decrease 3,900 decrease Prepare the operating activities section of the statement of cash flows using the direct method. deducted should be indicated with a minus sign.) Statement of Cash Flows (Partial) Cash flows from operating activities Receipts from customers Cost of goods sold Net cash provided by operating activities 0