Income Statement For Year Ended December 31 $ 1,575,000 771,750 803,250 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 215,775 37,800 42,525 4,725 17,325 318,150 485,100 6,300 $ 491,400 Accounts receivable Inventory $ 30,850 increase Accounts payable 27,800 increase Salaries payable. $ 9,250 decrease 4,500 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities