Sales SONAD COMPANY Income Statement For Year Ended December 31 Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 2,225,000 1,090,250 1,134,750 $ 304,825 53,400 60,075 6,675 24,475 449,450 685,300 8,900 $ 694,200 $ 42,400 increase Accounts payable. 25,725 increase Salaries payable $ 14,550 decrease 1,500 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Ar indicated with a minus sign.) 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 Changes in current operating assets and liabilities