Prepare the operating activities section of the statement of cash flows using the direct method.

SONAD COMPANY Income Statement For Year Ended December 31 Sales $1,986,000 973, 140 1,012,860 Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $272,082 47,664 53,622 5,958 21,846 Gain on sale of equipment Net income 401,172 611, 688 7,944 $ 619,632 Accounts receivable Inventory $36,000 increase Accounts payable 19,075 increase Salaries payable $11,500 decrease 2,250 decrease Statement of Cash Flows (Partial) Cash flows from operating activities