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 Gain on sale of equipment Net income $ 226,050 39,600 $ 1,650,000 808,500 841,500 44,550 4,950 18,150 333,300 508,200 6,600 $ 514,800 Accounts receivable Inventory $ 12,350 decrease 1,050 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) $ 18,800 increase Accounts payable 11,725 increase Salaries payable Statement of Cash Flows (Partial) Cash flows from operating activities