Exercise 12-20B (Algo) Direct: Cash flows from operating activities LO P5 The following income statement and additional year-end information is provided. $ 2,093,000 1,025,570 1,067,430 SONAD COMPANY Income Statement For Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Salaries expense $ 286,741 Depreciation expense 50,232 Rent expense 56,511 Amortization expenses-Patents 6,279 Utilities expense 23,023 Gain on sale of equipment Net income 422,786 644,644 8,372 $ 653,016 Accounts receivable Inventory $ 26,500 increase Accounts payable 35,175 increase salaries payable $ 14,550 decrease 1,600 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.) Statement of Cash Flows (Partial) Cash flows from operating activities