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

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 1,649,000
Cost of goods sold		808,010
Gross profit		840,990
Operating expenses
Salaries expense	$ 225,913
Depreciation expense	39,576
Rent expense	44,523
Amortization expensesPatents	4,947
Utilities expense	18,139	333,098
		507,892
Gain on sale of equipment		6,596
Net income		$ 514,488

Accounts receivable	$ 29,650 increase	Accounts payable	$ 11,700 decrease
Inventory	24,350 increase	Salaries payable	1,500 decrease

Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 225,913 Depreciation expense 39,576 Rent expense 44,523 Amortization expenses-Patents 4,947 Utilities expense 18,139 $ 1,649,000 808,010 840,990 333,098 507,892 6,596 Gain on sale of equipment Net income $ 514,488 Accounts receivable Inventory $ 29,650 increase Accounts payable 24,350 increase salaries payable $ 11,700 decrease 1,500 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (Partial) Cash flows from operating activities $