$ 2,275,000 1,114,750 1,160,250 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 311,675 Depreciation expense 54,600 Rent expense 61,425 Amortization expenses-Patents 6,825 Utilities expense 25,025 Gain on sale of equipment Net income 459,550 700,700 9, 100 $ 709,800 Accounts receivable $ 32,150 increase Accounts payable $ 13,975 decrease Inventory 39,775 increase Salaries payable 5,050 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 Depreciation expense Amortization expense-Patents Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable upei alilly expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $ 311,675 54,600 61,425 6,825 25,025 Gain on sale of equipment Net income 459,550 700,700 9, 100 $ 709,800 Accounts receivable Inventory $ 32,150 increase Accounts payable 39,775 increase Salaries payable $ 13,975 decrease 5,050 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 Depreciation expense Amortization expense-Patents Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable Net cash provided by operating activities upei alilly expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $ 311,675 54,600 61,425 6,825 25,025 Gain on sale of equipment Net income 459,550 700,700 9, 100 $ 709,800 Accounts receivable Inventory $ 32,150 increase Accounts payable 39,775 increase Salaries payable $ 13,975 decrease 5,050 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 Depreciation expense Amortization expense-Patents Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable Net cash provided by operating activities