$2,446,000 1,198,540 1, 247,460 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $335,102 Depreciation expense 58,704 Rent expense 66,042 Amortization expenses-Patents 7,338 Utilities expense 26,906 Gain on sale of equipment Net income 494,092 753,368 9,784 763,152 $ Accounts receivable Inventory $44,550 increase 14,025 increase Accounts payable Salaries payable $12,925 decrease 2,100 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 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