Hudson Ltd. is a private company reporting under ASPE. Its income statement and changes in current assets and current liabilities for the year are reported below: 

Instructions 

Prepare the operating activities section of the cash flow statement using the direct method

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HUDSON LTD. Income Statement Year Ended December 31, 2024 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Gain on sale of equipment Profit before income tax Income tax expense Profit for the year Changes in current assets and current liabilities were as follows: Accounts receivable Inventory Prepaid expenses Accounts payable Dividends payable Income tax payable $248,000 40,000 (8,000) $ 28,800 15,200 1,600 9,600 4,000 3,200 $758,400 392,000 366,400 280,000 86,400 24,000 $ 62,400 decrease increase increase decrease decrease decrease