Exercise $12-20$B $($Algo$)$ Direct: Cash flows from operating activities LO P$5$

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

SONAD COMPANY

Income Statement

For Year Ended December $31$

Sales $ $2,134,000$

Cost of goods sold $1,045,660$

Gross profit $1,088,340$

Operating expenses

Salaries expense $ $292,358$

Depreciation expense $51,216$

Rent expense $57,618$

Amortization expenses$$Patents $6,402$

Utilities expense $23,474431,068$

$657,272$

Gain on sale of equipment $8,536$

Net income $ $665,8088$

$\backslash$table$[[$ble$,050$ increase,Accounts payable,$$9,175$ decrease$],[$Inventory$,18,950$ increase,Salaries payable,$5,500$ 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.

$9\mathrm{.}09$

points

Answer is complete but not entirely correct.

$\backslash$table$[[$Statement of Cash Flows $($Partial$)],[$Cash flows from operating activities,,,$],[$Sales$,$x$,$$$,2,134,000\backslash$times $],[$Increase in Accounts receivable,x$,,(11,050)\backslash$times $],[$Salaries expense,x$,,292,358\backslash$times $],[$Depreciation expense,x$,,51,216\backslash$times $],[$Rent expense,x$,,57,618\backslash$times $],[$Amortization expenses$-$Patents,x$,,6,402\backslash$times $],[$Utilities expense,x$,,23,474\backslash$times $],[$Decrease in Salaries payable,x$,,(5,500)\backslash$times $],[$Net cash used in operating activities,x$,,2,548,518]]$