FRANK COMPANY Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $8,400,000 5,400,000 3,000,000 $500,000 700,000 90,000 Selling expenses expense Depreciation expense Amortization eoxpense 30,000 1,320,000 Amortization expense Net income $1,680,000 Additional Information: 1. Accounts receivable increased $400,000 during the year 2. Inventory increased $250,000 during the year. 3. Prepaid expenses increased $200,000 during the year 4. 5. Accrued expenses payable increased $160,000 during the year Accounts payable to merchandise suppliers increased $100,000 during the year. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, Company, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -1 n parenthesis e.g. (15,000).) FRANK COMPANY Statement of Cash Flows For the Year Ended December 31, 2017