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

SONAD COMPANY

Income Statement

For Year Ended December $31$

Sales $ $2,222,000$

Cost of goods sold $1,088,780$

Gross profit $1,133,220$

Operating expenses

Salaries expense $ $304,414$

Depreciation expense $53,328$

Rent expense $59,994$

Amortization expenses$$Patents $6,666$

Utilities expense $24,442448,844$

$684,376$

Gain on sale of equipment $8,888$

Net income $ $693,264$

Accounts receivable $ $22,650$ increase Accounts payable $ $9,650$ decrease

Inventory $19,475$ increase Salaries payable $5,500$ 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.$)$