Construct operating activities section in the DIRECT method

net cash provided

$1,940,000

.The inc0me statement of Munsun Company is presented here. MUNSUN COMPANY Income Statement For the Year Ended November 30, 2017 Sales revenue $7,600,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,4@,M Goods available for sale 6,300,000 Ending inventory 1,60_0,M Total cost of goods sold 4,7m,m Gross prot 2,900,000 Operating expenses Selling expenses 450,000 Administrative expenses y,m 1,15Q,m Net income $1, 50,000 1al information: Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000. Prepaid expenses increased $150,000 during the year. Accounts payable to suppliers of merchandise decreased $350,000 during the year. Accrued expenses payable decreased $100,000 during the year. Administrative expenses include depreciation expense of $110,000