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

SONAD COMPANY

Income Statement

For Year Ended December $31$

Sales $ $2,348,000$

Cost of goods sold $1,150,520$

Gross profit $1,197,480$

Operating expenses

Salaries expense $ $321,676$

Depreciation expense $56,352$

Rent expense $63,396$

Amortization expenses$$Patents $7,044$

Utilities expense $25,828474,296$

$723,184$

Gain on sale of equipment $9,392$

Net income $ $732,576$

Accounts receivable $ $36,300$ increase Accounts payable $ $14,100$ decrease

Inventory $22,575$ increase Salaries payable $1,550$ decrease

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

Note: Amounts to be deducted should be indicated with a minus sign.