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

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 2,492,000
Cost of goods sold		1,221,080
Gross profit		1,270,920
Operating expenses
Salaries expense	$ 341,404
Depreciation expense	59,808
Rent expense	67,284
Amortization expensesPatents	7,476
Utilities expense	27,412	503,384
		767,536
Gain on sale of equipment		9,968
Net income		$ 777,504

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

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 2,492,000
Cost of goods sold		1,221,080
Gross profit		1,270,920
Operating expenses
Salaries expense	$ 341,404
Depreciation expense	59,808
Rent expense	67,284
Amortization expensesPatents	7,476
Utilities expense	27,412	503,384
		767,536
Gain on sale of equipment		9,968
Net income		$ 777,504

Accounts receivable	$ 37,850 increase	Accounts payable	$ 9,575 decrease
Inventory	14,975 increase	Salaries payable	3,300 decrease

Prepare the operating activities section of the statement of cash flows using the direct method.