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 Cost of goods sold Gross profit Operating expenses $2,194,000 1,075,060 1,118,940 Salaries expense $300,578 Depreciation expense 52,656 Rent expense 59,238 Amortization expenses-Patents 6,582 Utilities expense 24,134 443,188 Gain on sale of equipment Net income 675,752 8,776 $ 684,528 Accounts receivable Inventory $12,700 increase 25,375 increase Accounts payable Salaries payable $10,725 decrease 4,950 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 0