The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 2,271,000 Cost of goods sold 1,112,790 1,158,210 Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 311,127 54,504 61,317 6,813 24,981 458,742 699,468 9,084 $ 708,552 Accounts receivable Inventory $ 39,300 increase Accounts payable 20,400 increase Salaries payable $ 14,775 decrease 1,200 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