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

SONAD COMPANY
Income Statement
For Year Ended December 31
Sales		$ 1,755,000
Cost of goods sold		859,950
Gross profit		895,050
Operating expenses
Salaries expense	$ 240,435
Depreciation expense	42,120
Rent expense	47,385
Amortization expensesPatents	5,265
Utilities expense	19,305	354,510
		540,540
Gain on sale of equipment		7,020
Net income		$ 547,560

Accounts receivable	$ 34,350 increase	Accounts payable	$ 13,550 decrease
Inventory	37,450 increase	Salaries payable	4,050 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.