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Problem 15-22 The income statement of Stuart Company is shown below: STUART COMPANY Income Statement For the Year Ended December 31, 20X0 Sales Cost of goods sold Gross profit Operating expenses $8,200,000 5,400,000 2,800,000 Selling expenses Administrative expense Depreciation expense Amortization expense $500,000 700,000 90,000 30,000 1,320,000 $1,480,000 Net income Additional information: 1. Accounts receivable increased $400,000 during the year 2. Inventory increased $250,000 during the year 3. Prepaid expenses increased $200,000 during the year 4. Accounts payable to merchandise suppliers increased $100,000 during the year. 5. Accrued expenses payable increased $180,000 during the year Required Prepare the operating activities section of the statement of cash flows for the year ended December 31, 20X0, for Stuart Company, using the direct method STUART COMPANY Statement of Cash Flows For the Year Ended December 31, 20X0 Cash flows from operating activities Adjustments to Cash Basis: Net cash provided by operations