Exercise 12-20B (Algo) Direct: Cash flows from operating activities LO P5 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense For Year Ended December 31 $ 2,403,000 1,177,470 1,225,530 $329,211 57,672 64,881 7,209 26,433 485,406 740,124 9,612 Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 749,736 $ 41,750 increase Accounts payable 30,200 increase Salaries payable $ 13,575 decrease 1,600 decrease Gain on sale of equipment Net income 9,612 $749,736 Accounts receivable: Inventory $ 41,750 increase Accounts payable 30,200 increase Salaries payable $ 13,575 decrease 1,600 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