$2,097,000 1,027,530 1,069, 470 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $287, 289 Depreciation expense 50,328 Rent expense 56,619 Amortization expenses-Patents 6,291 Utilities expense 23,067 Gain on sale of equipment Net income 423,594 645,876 8,388 $ 654,264 Accounts receivable Inventory $33,750 increase 12,100 increase Accounts payable Salaries payable $13,450 decrease 4,100 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 Net income 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