The following income statement and additional year$-$end information is provided.

SONAD COMPANY

Income Statement

For Year Ended December $31$

Sales $ $1,992,000$

Cost of goods sold $976,080$

Gross profit $1,015,920$

Operating expenses

Salaries expense $ $272,904$

Depreciation expense $47,808$

Rent expense $53,784$

Amortization expenses$$Patents $5,976$

Utilities expense $21,912402,384$

$613,536$

Gain on sale of equipment $7,968$

Net income $ $621,504$

Accounts receivable $ $22,050$ increase Accounts payable $ $12,500$ decrease

Inventory $29,575$ increase Salaries payable $1,900$ decrease

Prepare the operating activities section of the statement of cash flows using the direct method.

Note: Amounts to be deducted should be indicated with a minus sign.