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

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 1,804,000
Cost of goods sold		883,960
Gross profit		920,040
Operating expenses
Salaries expense	$ 247,148
Depreciation expense	43,296
Rent expense	48,708
Amortization expensesPatents	5,412
Utilities expense	19,844	364,408
		555,632
Gain on sale of equipment		7,216
Net income		$ 562,848

Accounts receivable	$ 46,050 increase	Accounts payable	$ 10,650 decrease
Inventory	26,950 increase	Salaries payable	2,900 decrease

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