47 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $1,964,000 Cost of goods sold 962, 360 Gross profit 1,001,640 Operating expenses Salaries expense $269,068 Depreciation expense 47,136 Rent expense 53,028 Amortization expenses-Patents 5,892 Utilities expense 21,604 396,728 604,912 Gain on sale of equipment 7,856 Net income $ 612,768 Accounts receivable Inventory $23,350 increase 22,700 increase Accounts payable Salaries payable $14,425 decrease 2,300 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 Accounts receivable Inventory $23,350 increase 22,700 increase Accounts payable Salaries payable $14,425 decrease 2,300 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