Answer:
Statement of Cash Flows (partial)  
Cash flows from operating activities  
Net income	<em>579,696
</em>
Adjustments to reconcile net income to net cash provided by operating activities  
<em>Income statement items not affecting cash  </em>
Depreciation expense	<em>44,592</em>
Amortization expense—Patents	<em>5,574</em>
Gain on sale of equipment	<em>-7,432</em>
<em>Changes in current operating assets and liabilities  </em>
Increase in accounts receivable	<em>-47,700</em>
Increase in inventory	<em>-15,650
</em>
Decrease in accounts payable	<em>-13,550
</em>
Decrease in salaries payable	<em>-3,500
</em>
Net cash provided by operating activities	<em>5,42,030</em>