The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $260,985 Depreciation expense 45,720 Rent expense 51,435 Amortization expenses-Patents 5,715 Utilities expense 20,955 $1,905,000 933,450 971,550 Gain on sale of equipment Net income 384,810 586,740 7,620 594,360 $ Accounts receivable Inventory $20,900 increase 25,475 increase Accounts payable Salaries payable $12,975 decrease 2,850 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amc should be indicated with a minus sign.) Answer is not complete. Statement of Cash Flows (partial) Cash flows from operating activities Net income $ 594,360 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 45,720 Amortization expense-Patents 5,715 Gain on sale of equipment (7,620) Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in counts payable Decrease in salaries payable (20,900) (25,475) (12,975) (2,850) $ 575,975