Nash Company Income Statement For the Year Ended December 31, 2025 Sales revenue Cost of goods sold \begin{tabular}{lrl} Beginning inventory & $1,890,000 \\ Purchases & 4,410,000 \\ \cline { 2 - 2 } Goods available for sale & 6,300,000 & \\ Ending inventory & 1,590,000 & \\ Cost of goods sold & & 4,710,000 \\ Gross profit & & 2,220,000 \\ Operating expenses & 450,000 & \\ Selling expenses & 700,000 & \\ Administrative expenses & & $1,150,000 \\ & & \\ Net income & & \end{tabular} Additional information: $6,930,000 Additional information: 1. Accounts receivable decreased $370,000 during the year. 2. Prepaid expenses increased $160,000 during the vear. 3. Accounts payable to suppliers of merchandise decreased $290,000 during the year. 4. Accrued expenses payable decreased $90,000 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. Prepare the operating activities section of the statement of cash flows using the direct method