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

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 2,075,000
Cost of goods sold		1,016,750
Gross profit		1,058,250
Operating expenses
Salaries expense	$ 284,275
Depreciation expense	49,800
Rent expense	56,025
Amortization expensesPatents	6,225
Utilities expense	22,825	419,150
		639,100
Gain on sale of equipment		8,300
Net income		$ 647,400

Accounts receivable	$ 20,100 increase	Accounts payable	$ 12,500 decrease
Inventory	31,550 increase	Salaries payable	4,300 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.)

Produce Statement of Cash Flows (Partial)