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

SONAD COMPANY Income Statement For Year Ended December 31
Sales				$	2,479,000
Cost of goods sold					1,214,710
Gross profit					1,264,290
Operating expenses
Salaries expense	$	339,623
Depreciation expense		59,496
Rent expense		66,933
Amortization expensesPatents		7,437
Utilities expense		27,269			500,758
					763,532
Gain on sale of equipment					9,916
Net income				$	773,448

Accounts receivable	$	36,200		increase		Accounts payable	$	10,850		decrease
Inventory		15,200		increase		Salaries payable		2,500		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.)