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 $336,335 Depreciation expense 58,920 Rent expense 66,285 Amortization expenses-Patents 7, 365 Utilities expense 27,005 $2,455,000 1,202,950 1,252,650 Gain on sale of equipment Net income 495,910 756,140 9,820 765,960 $ Accounts receivable Inventory $43,600 increase 21,950 increase Accounts payable Salaries payable $ 8,825 decrease 5,700 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (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 Net income $ 765,960 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Gain on sale of equipment (9,820) Depreciation expense 58,920 Amortization expense-Patents 7,365 Changes in current operating assets and liabilities Increase in inventory Decrease in accounts payable Decrease in salaries payable (21,950) (8,825) (5,700) (43,600) OOOO Increase in accounts receivable $.742 350