P17-3B The income statement of Asquith Company is presented. Additional information: 1. Accounts receivable decreased $320,000 during the year, and inventory increased $120,000. 2. Prepaid expenses increased $175,000 during the year. 3. Accounts payable to merchandise suppliers increased $50,000 during the year. 4. Accrued expenses payable increased $155,000 during the year. ASQUITH COMPANY Income Statement For the Year Ended December 31, 2012 Sales revenue $5,400,000 Cost of goods sold Beginning inventory $1,780,000 Purchases 3,430,000 Goods available for sale 5,210,000 Ending inventory 1,900,000 Total cost of goods sold 3,310,000 Gross profit 2,090,000 Operating expenses Depreciation expense 105,000 Amortization expense 20,000 Other expenses 945,000 1,070,000 Net income $1,020,000 Instructions Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Asquith Company, using the indirect method