Using the following income statement and additional year-end information

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

For Year Ended December 31Sales   $2,120,000 Cost of goods sold    1,038,800 Gross profit    1,081,200 Operating expenses      Salaries expense$290,440    Depreciation expense 50,880    Rent expense 57,240    Amortization expenses—Patents 6,360    Utilities expense 23,320  428,240      652,960 Gain on sale of equipment    8,480 Net income   $661,440 

Accounts receivable$25,950 increase Accounts payable$10,850 decreaseInventory 19,050 increase Salaries payable 5,700 decrease

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