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

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.)

$ 1,651,000 808,990 842,010 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 226, 187 Depreciation expense 39,624 Rent expense 44,577 Amortization expenses-Patents 4,953 Utilities expense 18,161 Gain on sale of equipment Net income 333,502 508,508 6,604 $ 515,112 Accounts receivable Inventory $ 33,150 increase Accounts payable 37,350 increase Salaries payable $ 12,625 decrease 2,350 decrease 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