P 13-2B The statement of income for Gum San Ltd., a private company following ASPE for reporting purposes, is presented here: GUM SAN LTD. Sales Cost of Good Sold Statement of Income Year Ended December 31, 2021 Gross Profit Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net Income Additional information: $ 4,500,000 2,390,000 2,110,000 1,070,000 1,040,000 12,000 1,028,000 260,000 768,000 1. Operating expenses include $150,000 of depreciation expense and a $12,000 gain on disposal of equipment. 2. Accounts receivable increased by $500,000. 3. Inventory decreased by $220,000. 4. Prepaid expenses related to operating expenses increased by $170,000. 5. Accounts payable to suppliers of merchandise increased by $50,000. 6. Accrued liabilities related to operating expenses decreased by $165,000. 7. Interest payable increased by $5,000. 8. Deferred revenue that is received from customers increased by $8,000. 9. Income tax payable decreased by $16,000. Instructions (a) Prepare the operating activities section of the statement of cash flows, using the indirect method. $150,000 $12,000 $500,000 $220,000 $170,000 $50,000 $165,000 $5,000 $8,000 $16,000