Exercise 16-18B Direct: Cash flows from operating activities LO P5 Using the following income statement and additional year-end information. SONAD COMPANY Incone Statement For Year Ended December 311 Sales Cost of goods sold $1,828,000 991,000 Gross profit 837,000 Operating expenses Salaries expense $245,535 Depreciation expense 44,200 Rent expense 49,600 Amortization expenses-Patents 4,200 Utilities expense 18,125 361,660 Gain on sale of equipment 475,340 6,200 Net income 5 481,540 Accounts receivable $30,500 increase Inventory 25,000 increase Accounts payable Salaries payable $12,500 decrease 3,500 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.)