Sales Cost of goods sold Gross profit Operating expenses Salaries expense SONAD COMPANY Income Statement For Year Ended December 31 Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $ 231,256 40,512 45,576 $ 1,688,000 827,120 860,880 Gain on sale of equipment Net income Accounts receivable Inventory 5,064 18,568 340,976 519,904 6,752 $ 526,656 $ 48,650 increase Accounts payable 30,975 increase Salaries payable $ 8,275 decrease 3,150 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.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Gain on sale of equipment Amortization expense-Patents Depreciation expense Increase in accounts receivable Changes in current operating assets and liabilities Decrease in accounts payable Increase in inventory Decrease in salaries payable $ 526,656 6,752 x 5,064 40,512 48,650 8,275 16,775 4,900 $ 657,584