Exercise 23-4 The income statement of Ayayai Company is shown below AYAYAI COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,850,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,880,000 4,410,000 6,290,000 1,610,000 4,680,000 Gross profit Operating expenses 2,170,000 Selling expenses Administrative expenses 450,000 710,000 1,160,000 Net income $1,010,000 Additional information: 1. Accounts receivable decreased $380,000 during the year 2. Prepaid expenses increased $150,000 during the year 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year 4. Accrued expenses payable decreased $110,000 during the year 5. Administrative expenses include depreciation expense of $50,000 Prepare the operating activities section of the statement of cash flows using the direct method