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 Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 245,641 43,032 48,411 5,379 19,723 $ 1,793,000 878,570 914,430 362, 186 552,244 7,172 $ 559,416 Accounts receivable $ 42,550 increase Accounts payable 35,225 increase Salaries payable Inventory $ 8,300 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. 3,750 decrease Note: Amounts to be deducted should be indicated with a minus sign.

The following income statement and additional year-end information is provided. Accounts receivable Inventory $42,550 increase Accounts payable 35,225 increase Salaries payable $8,300 decrease 3,750 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. 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