Exercise 12-18B Direct: Cash flows from operating activities LO P5 Using the following income statement and additional year-end information. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $328,663 Depreciation expense 57,576 Rent expense 64,773 Amortization expenses-Patents 7,197 Utilities expense 26,389 $ 2,399,000 1,175,510 1,223,490 Gain on sale of equipment 484,598 738,892 9,596 $ 748,488 Net income Accounts receivable Inventory $ 27,700 increase 11,100 increase Accounts payable Salaries payable $13,075 decrease 4,600 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.) 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.) Statement of Cash Flows (Partial) Cash flows from operating activities $ 0