The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales $ 1,823,000 893,270 Cost of goods sold Gross profit 929,730 Operating expenses 368,246 561,484 7,292 $ 568,776 $ 249,751 Salaries expense Depreciation expense 43,752 Rent expense 49,221 5,469 Amortization expenses-Patents Utilities expense 20,053 Gain on sale of equipment Net income Accounts receivable Inventory $ 19,900 increase Accounts payable 17,325 increase Salaries payable $9,325 decrease 2,500 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct. Statement of Cash Flows (Partial) Cash flows from operating activities X $ 43,652 5,469 X Depreciation expense Amortization expenses-Patents Increase in Accounts receivable Increase in Inventory X (19,900) X X (17,325) ► Decrease in Accounts payable X (9,325) X Decrease in Salaries payable (2,500) Rent expense 49,221 Salaries expense 249,751 Net cash provided by operating activities $ 299,043