Sales $ 2,337,000 Cost of goods sold 1,145,130 Gross profit 1,191,870 Operating expenses Salaries expense $ 320,169 Depreciation expense 56,088 Rent expense 63,099 Amortization expensesPatents 7,011 Utilities expense 25,707 472,074 719,796 Gain on sale of equipment 9,348 Net income $ 729,144 Accounts receivable $ 26,300 increase Accounts payable $ 9,100 decrease Inventory 20,575 increase Salaries payable 1,100 decrease Prepare the operating activities section of the statement of cash flows using the direct method