Exercise 12-18B Direct: Cash flows from operating activities LO P5 Using the following income statement and additional year-end information. SONAD COMPANY Income Statement For Year Ended December 31 Sales $2,203,000 Cost of goods sold 1,079, 470 Gross profit 1,123,530 Operating expenses Salaries expense $301,811 Depreciation expense 52,872 Rent expense 59,481 Amortization expenses-Patents 6,609 Utilities expense 24,233 445,006 678,524 Gain on sale of equipment 8,812 Net income $ 687,336 Accounts receivable Inventory $25,500 increase 18,125 increase Accounts payable Salaries payable $10,900 decrease 2,900 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