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

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 2,297,000
Cost of goods sold		1,125,530
Gross profit		1,171,470
Operating expenses
Salaries expense	$ 314,689
Depreciation expense	55,128
Rent expense	62,019
Amortization expensesPatents	6,891
Utilities expense	25,267	463,994
		707,476
Gain on sale of equipment		9,188
Net income		$ 716,664

Accounts receivable	$ 48,650 increase	Accounts payable	$ 11,500 decrease
Inventory	37,875 increase	Salaries payable	4,700 decrease

Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 $ 2,297,000 1,125,530 1,171, 470 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense $ 314,689 55, 128 62,019 6,891 25, 267 463,994 707,476 9,188 Gain on sale of equipment Net income $ 716,664 Accounts receivable Inventory $ 48,650 increase Accounts payable 37,875 increase salaries payable $ 11,500 decrease 4,700 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Net income $ 716,664 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash