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

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)

$1,862,000 912,380 949,620 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $255,094 Depreciation expense 44,688 Rent expense 50,274 Amortization expenses-Patents 5,586 Utilities expense 20,482 Gain on sale of equipment Net income 376, 124 573,496 7,448 $ 580,944 Accounts receivable Inventory $36, 800 increase 17,650 increase Accounts payable Salaries payable $9,475 decrease 4,900 decrease Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities