Exercise 12-20B (Algo) Direct: Cash flows from operating activities LO P5 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold $ 2,278,000 1,116,220 1,161,780 Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income Accounts receivable Inventory $ 312,086 54,672 61,506 6,834 25,058 460,156 701,624 9,112 $ 710,736 $ 20,050 increase Accounts payable 33,525 increase salaries payable $ 8,150 decrease 2,500 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.) Statement of Cash Flows (Partial) Cash flows from operating activities Receipts from customers Payments for inventory Payments for salaries Payments for rent Payments for utilities $ 0