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

SONAD COMPANY

Income Statement

For Year Ended December 31Sales$2,475,000Cost of goods sold1,212,750Gross profit1,262,250Operating expensesSalaries expense$339,075Depreciation expense59,400Rent expense66,825Amortization expensesPatents7,425Utilities expense27,225499,950762,300Gain on sale of equipment9,900Net income$772,200

Accounts receivable$19,750increaseAccounts payable$13,475decreaseInventory22,775increaseSalaries payable4,150decrease

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