APPLY THE CONCEPTS: Prepare the operating activities section The income statement and comparative balance sheets for Leonardo Inc. can be viewed by clicking on the links below. No depreciable assets were purchased or sold during the period therefore, the increase in Accumulated Depreciation is due to depreciation expense for the period. Complete the operating activities section of the statement of cash flows. Use a minus sign to indicate an outflow of cash. No sign is needed to indicate an inflow of cash. Income Statement Leonardo Inc. Income Statement For the Year Ended December 31, 2013 Sales $489,600 254,592 Cost of merchandise sold $235,008 Gross profit Operating expenses: Depreciation expense $5,120 161,344 other operating expenses Total operating expenses 166,464 Income from operations $68,544 Other revenue and expenses: Interest revenue $960 5,440 4,480 Gain on sale of land Income before taxes $73,984 Income taxes 19,584 $54,400 Net income