The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,260,000 Cost of goods sold 1,107,400 Gross profit 1,152,600 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 309,620 54,240 61,020 6,780 24,860 456,520 696,080 9,040 $ 705,120 Accounts receivable Inventory $ 38,450 increase Accounts payable 25,825 increase Salaries payable $ 8,850 decrease 2,150 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Net income $ 705,120 Accounts receivable Inventory $ 38,450 increase Accounts payable 25,825 increase Salaries payable $ 8,850 decrease 2,150 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $