Exercise 16-20B (Static) 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 $ 1,828,000 991,000 837,000 Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 245,535 44,200 49,600 4,200 18, 125 361,660 475,340 6,200 $ 481,540 Accounts receivable $ 30,500 increase Accounts payable Inventory 25,000 increase Salaries payable $ 12,500 decrease 3,500 decrease Prepare the operating activities section of the statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. Statement of Cash Flows (Partial) Cash flows from operating activities $ 0