he following income statement and additional year-end information is provided.

SONAD COMPANY Income Statement For Year Ended December 31
Sales				$	2,428,000
Cost of goods sold					1,189,720
Gross profit					1,238,280
Operating expenses
Salaries expense	$	332,636
Depreciation expense		58,272
Rent expense		65,556
Amortization expensesPatents		7,284
Utilities expense		26,708			490,456
					747,824
Gain on sale of equipment					9,712
Net income				$	757,536

Accounts receivable	$	26,100		increase		Accounts payable	$	9,750		decrease
Inventory		19,175		increase		Salaries payable		2,950		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.)

Question 3 of 10 Total 3