The following income statement and additional year-end information is provided. $1,629,000 798,210 830,790 SONAD COMPANY Income Statement For Year Ended December 31 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 $223,173 39,096 43,983 4.887 17,919 329,058 501,732 6,516 $ 508,248 Accounts receivable Inventory $24.500 increase 23,550 increase Accounts payable Salaries payable $ 9,975 decrease 1,450 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 $ 508,248 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 39,096 Amortization expense-Patents Gain on sale of equipment (6,516) 4,887 Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in salaries payable Decrease in accounts receivable (24,500) (23,550) (1,450) (9,975) $ 486,240