The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $2,038,000 Cost of goods sold Gross profit 998,620 1,039,380 Operating expenses Salaries expense $279,206 Depreciation expense 48,912 Rent expense 55,026 Amortization expenses-Patents 6,114 Utilities expense 22,418 411,676 Gain on sale of equipment 627,704 8,152 Net income $ 635,856 Accounts receivable Inventory $47,550 increase. Accounts payable 34,200 increase Salaries payable $8,525 decrease 2,000 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.) Statement of Cash Flows (partial) Cash flows from operating activities Net income $ 635,856 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 48,912