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 $214, 268 Depreciation expense 37,536 Rent expense 42,228 Amortization expenses-Patents 4,692 Utilities expense 17,204 $1,564,000 766, 360 797,640 Gain on sale of equipment Net income 315,928 481,712 6,256 $ 487,968 Accounts receivable Inventory $41,500 increase 14, 100 increase Accounts payable Salaries payable $13,000 decrease 3,050 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.) Statement of Cash Flows (Partial) Cash flows from operating activities $ 0