The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,560,000 Cost of goods sold 764,400 Gross profit 795,600 Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 213,720 37,440 42,120 4,680 17,160 315,120 480,480 6,240 $ 486,720 Accounts receivable Inventory $ 31,100 increase Accounts payable 31,575 increase Salaries payable $ 9,175 decrease 5,450 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.) Answer is not complete. Statement of Cash Flows (partial) Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Gain on sale of equipment Depreciation expense Amortization expense-Patents Changes in current operating assets and liabilities Increase in inventory Decrease in accounts payable Decrease in salaries payable 300 $ 486,720 (6,240) 37,440 4,680 $ 522,600