The following income statement and additional year-end information is provided. 1 20 points $1,586,000 777, 140 808,860 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $217,282 Depreciation expense 38,064 Rent expense 42,822 Amortization expenses-Patents 4,758 Utilities expense 17,446 8 01:53:02 Gain on sale of equipment Net income 320, 372 488,488 6,344 $ 494,832 Accounts receivable Inventory $41,850 increase Accounts payable 22,125 increase Salaries payable $11,700 decrease 5,250 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 $ 494,832 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 38,064 Amortization expense-Patents 4,758 Loss on sale of equipment (6,344) Changes in current operating assets and liabilities 531,310