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