1. Accounts receivable decreased $400,000 during the year. 2. Prepaid expenses decreased $100,000 during the year 3. Accounts payable to merchandise decreased $350,000 during the year. 4. Inventory increased $300,000 during the year. 5. Accrued expenses payable increased $ 200,000 during the year. 6. Administrative expenses include depreciation expense of $250,000 7. Taxes payable decreased $25,000 during the year. Required: Prepare the Operating Activities section of Statement of Cash Flows using the Direct method