Exercise 23-3 The income statement of Sheridan Company is shown below.

SHERIDAN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,630,000Cost of goods sold Beginning inventory $1,840,000Purchases 4,520,000 Goods available for sale 6,360,000 Ending inventory 1,530,000 Cost of goods sold 4,830,000 Gross profit 1,800,000 Operating expenses Selling expenses 450,000 Administrative expenses 660,000 1,110,000 Net income $690,000 Additional information:

1. Accounts receivable decreased $290,000 during the year.

2. Prepaid expenses increased $180,000 during the year.

3. Accounts payable to suppliers of merchandise decreased $260,000 during the year.

4. Accrued expenses payable decreased $120,000 during the year.

5. Administrative expenses include depreciation expense of $60,000.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Sheridan Company, using the indirect method.