Using the following income statement and additional year-end information.

SONAD COMPANY

Income Statement

For Year Ended December 31Sales$2,430,000Cost of goods sold1,190,700Gross profit1,239,300Operating expensesSalaries expense$332,910Depreciation expense58,320Rent expense65,610Amortization expensesPatents7,290Utilities expense26,730490,860748,440Gain on sale of equipment9,720Net income$758,160

Accounts receivable$41,650increaseAccounts payable$9,400decreaseInventory20,150increaseSalaries payable3,050decrease

Prepare the operating activities section of the statement of cash flows using the direct method.