SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 2,233,000
Cost of goods sold		1,094,170
Gross profit		1,138,830
Operating expenses
Salaries expense	$ 305,921
Depreciation expense	53,592
Rent expense	60,291
Amortization expensesPatents	6,699
Utilities expense	24,563	451,066
		687,764
Gain on sale of equipment		8,932
Net income		$ 696,696

Accounts receivable	$ 30,700 increase	Accounts payable	$ 8,250 decrease
Inventory	36,600 increase	Salaries payable	4,000 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.)

Statement of Cash Flows (Partial)
Cash flows from operating activities
	$0