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

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 1,853,000
Cost of goods sold		907,970
Gross profit		945,030
Operating expenses
Salaries expense	$ 253,861
Depreciation expense	44,472
Rent expense	50,031
Amortization expensesPatents	5,559
Utilities expense	20,383	374,306
		570,724
Gain on sale of equipment		7,412
Net income		$ 578,136

Accounts receivable	$ 18,450 increase	Accounts payable	$ 12,225 decrease
Inventory	27,025 increase	Salaries payable	6,000 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