Sales $ 1,868,000 Cost of goods sold 915,320 Gross profit 952,680 Operating expenses Salaries expense $ 255,916 Depreciation expense 44,832 Rent expense 50,436 Amortization expensesPatents 5,604 Utilities expense 20,548 377,336 575,344 Gain on sale of equipment 7,472 Net income $ 582,816 Accounts receivable $ 23,100 increase Accounts payable $ 15,775 decrease Inventory 32,750 increase Salaries payable 4,200 decrease

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