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

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 2,354,000
Cost of goods sold		1,153,460
Gross profit		1,200,540
Operating expenses
Salaries expense	$ 322,498
Depreciation expense	56,496
Rent expense	63,558
Amortization expensesPatents	7,062
Utilities expense	25,894	475,508
		725,032
Gain on sale of equipment		9,416
Net income		$ 734,448

Accounts receivable	$ 45,900 increase	Accounts payable	$ 13,600 decrease
Inventory	29,725 increase	Salaries payable	5,900 decrease

Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)