Refer to information in Exercise 16-4. Use the direct method to prepare the operating activities section of Sonad’s statement of cash flows.

Data From Exercise 16-4

Using the following income statement and additional year-end information, prepare the operating activities section of the statement of cash flows using the indirect method.

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SONAD COMPANY Income Statement For Year Ended December 31 $1,828,000 991,000 837,000 Sales ..... Cost of goods sold . Gross profit.... Operating expenses Salaries expense $245,535 44,200 49,600 Depreciation expense Rent expense . Amortization expense-Patents Utilities expense... Selected Year-End Balance Sheet Data 4,200 18,125 361,660 Accounts receivable .. $30,500 increase 475,340 Inventory .... 25,000 increase Gain on sale of equipment... Net income ...... 6,200 $ 481,540 Accounts payable .... 12,500 decrease .... Salaries payable ..... 3,500 decrease