Exercise $16-18$B Direct: Cash flows from operating activities LO P$5$

Using the following income statement and additional year$-$end information.

SONAD COMPANY

Income Statement

For Year Ended December $31$

Sales $ $1,828,000$

Cost of goods sold $991,000$

Gross profit $837,000$

Operating expenses

Salaries expense $ $245,535$

Depreciation expense $44,200$

Rent expense $49,600$

Amortization expenses$$Patents $4,200$

Utilities expense $18,125361,660$

$475,340$

Gain on sale of equipment $6,200$

Net income $ $481,540$

Accounts receivable $ $30,500$ increase Accounts payable $ $12,500$ decrease

Inventory $25,000$ increase Salaries payable $3,500$ decrease

Prepare the operating activities section of the statement of cash flows using the direct method. $($Amounts to be deducted should be indicated with a minus sign.$)$