$1,965,000 962,850 1,002,150 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $269, 205 Depreciation expense 47,160 Rent expense 53,055 Amortization expenses-Patents 5,895 Utilities expense 21,615 Gain on sale of equipment Net income 396,930 605,220 7,860 $ 613,080 Accounts receivable Inventory $23,600 increase 19,500 increase Accounts payable Salaries payable $11,375 decrease 4,200 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