The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense i Rent expense Amortization expenses-Patents Utilities expense $ 303,455 53,160 Gain on sale of equipment Net income $ 2,215,000 1,085,350 1,129,650 59,805 6,645 24,365 447,430 682,220 8,860 $ 691,080 Accounts receivable. Inventory $34,750 increase Accounts payable 13,700 increase Salaries payable $14,175 decrease 1,100 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. Cash flows from operating activities Net income Statement of Cash Flows (partial) Adjustments to reconcile net income to net cash provided by operating activities $ 6.910,080 Income statement items not affecting cash Amortization expense-Patents Depreciation expense Gain on sale of equipment Changes in current operating assets and liabilities i Increase in accounts receivable. Increase in inventory Decrease in accounts payable 53,160 6,645 8.860 < Prev 2 of 4 Next >