Question
For the year-ending December 31, 2020, Home Manufacturing reported Net Income in the amount of $ 5,000,000. Included in this amount was a Pre-Tax Gain
For the year-ending December 31, 2020, Home Manufacturing reported Net Income in the amount of $ 5,000,000. Included in this amount was a Pre-Tax Gain of $ 1,500,000, related to the sale of equipment. At the time of sale, the equipment sold had a book value of $ 2,500,000, and it was sold for $ 4,000,000. Since Home Manufacturing pays taxes at a rate of 20%, the after-tax gain was $ 1,200,000. In addition to the above, for the year ending December 31, 2020, Home Manufacturing reported depreciation in the amount of $ 600,000. During the year, Accounts Receivable increased by $ 100,000, Inventory decreased by $ 300,000, and Accounts Payable increased by $ 500,000. Home Manufacturing uses the Indirect Method when preparing their Statement of Cash Flows. Based on the information provided above, what is the amount of "Cash Provided by Operating Activity" that Home Manufacturing should report for their fiscal-year ending December 31, 2020?
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