$1,779,000 871, 710 907,290 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $243,723 Depreciation expense 42,696 Rent expense 48,033 Amortization expenses-Patents 5,337 Utilities expense 19,569 359, 358 547,932 7,116 555,048 Gain on sale of equipment Net income $ Accounts receivable Inventory $26,650 increase 26,475 increase Accounts payable Salaries payable $10,250 decrease 4,800 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 Changes in current operating assets and liabilities