Exercise 23-4 The income statement of Crane Company is shown below CRANE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,930,000 Cost of goods sold Beginning inventory $1,900,000 4,350,000 Purchases Goods available for sale 6,250,000 1,610,000 Ending inventory Cost of goods sold 4,640,000 2,290,000 Gross profit Operating expenses Selling expenses 460,000 700,000 Administrative expenses 1,160,000 $1,130,000 Net income Additional information: 1. Accounts receivable decreased $360,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year 4. Accrued expenses payable decreased $110,000 during the year 5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows using the direct method. CRANE COMPANY Statement of Cash Flows (Partial)