BLUE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,960,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,380,000 Goods available for sale 6.290.000 Ending inventory 1,610,000 Cost of goods sold 4.680.000 Gross profit 2.280.000 Operating expenses Selling expenses 450,000 Administrative expenses 710.000 1.160.000 Net income $1.120.000 Additional information: 1. 2. 3. Accounts receivable decreased $380,000 during the year. Prepaid expenses increased $190,000 during the year. Accounts payable to suppliers of merchandise decreased $290,000 during the year. Accrued expenses payable decreased $90,000 during the year. Administrative expenses include depreciation expense of $70,000. 4. 5. Prepare the operating activities section of the statement of cash flows using the direct method. BLUE COMPANY Statement of Cash Flows (Partial) $ $ $