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

SONAD COMPANY

Income statement

For Year Bnded December $31$

Sales

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

$ $27,550$ increase Accounts payable

$$9,775$ decrease

Inventory

$11,475$ increase Salaries payable

$3,450$ 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.$)$