Using the following income statement and additional year-end information.

SONAD COMPANY Income Statement For Year Ended December 31
Sales				$	1,665,000
Cost of goods sold					815,850
Gross profit					849,150
Operating expenses
Salaries expense	$	228,105
Depreciation expense		39,960
Rent expense		44,955
Amortization expensesPatents		4,995
Utilities expense		18,315			336,330
					512,820
Gain on sale of equipment					6,660
Net income				$	519,480

Accounts receivable	$	37,650		increase		Accounts payable	$	13,425		decrease
Inventory		26,700		increase		Salaries payable		4,000		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.)