The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,828,000 Cost of goods sold 991,000 837,000 Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 245,535 44,200 49,600 4,200 18,125 361,660 475,340 6,200 $ 481,540 $ 30,500 increase Accounts payable 25,000 increase Salaries payable Accounts receivable Inventory $ 12,500 decrease 3,500 decrease Prepare the operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. Answer is not complete. Statement of Cash Flows (Partial) Cash flows from operating activities Depreciation expense $ 44,200 x Amortization expenses-Patents 4,200 Increase in Accounts receivable (30,500) Increase in Inventory (25,000) Decrease in Accounts payable 12,500 Decrease in Salaries payable 35,000 Gain on sale of equipment 6,200 46,600