The following income statement and additional yearend information is provided.

SONAD COMPANY

Income Statement

For Year Ended December

Sales $

Cost of goods sold

Gross profit

Operating expenses

Salaries expense $

Depreciation expense

Rent expense

Amortization expensesPatents

Utilities expense

Gain on sale of equipment

Net income $

Accounts receivable $ increase Accounts payable $ decrease

Inventory increase Salaries payable 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.