The income statement of Oriole Company is shown below. ORIOLE COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue $6,610,000
Cost of goods sold
Beginning inventory $1,850,000
Purchases 4,330,000
Goods available for sale 6,180,000
Ending inventory 1,540,000
Cost of goods sold 4,640,000
Gross profit 1,970,000
Operating expenses
Selling expenses 410,000
Administrative expenses 690,000
1,100,000
Net income $870,000
Additional information:
1. Accounts receivable decreased $320,000 during the year.
2. Prepaid expenses increased $160,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $240,000 during the year.
4. Accrued expenses payable decreased $130,000 during the year.
5. Administrative expenses include depreciation expense of $50,000.
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Oriole Company, using the indirect method.