Prepare the operating activities section - Indirect method. (503) P17-3A The income statement of Toby Zed Company is presented here. TOBY ZED COMPANY Income Statement For the Year Ended November 30, 2012 Sales revenue $7,700,000 Cost of goods sold Beginning inventory $1.900,000 Purchases 4.400,000 Goods available for sale 6,300,000 Ending inventory 1.400,000 Total cost of goods sold 4.900.000 Gross profit 2,800,000 Operating expenses 1,150,000 Net income $1,650,000 Additional information: 1. Accounts receivable increased $250,000 during the year, and inventory decreased $500,000 2. Prepaid expenses increased $150,000 during the year. 808 17 Statement of Cash Flows 3. Accounts payable to suppliers of merchandise decreased $340,000 during the year. 4. Accrued expenses payable decreased $100,000 during the year. 5. Operating expenses include depreciation expense of $90.000. Instructions Cash from operations Prepare the operating activities section of the statement of cash flows for the year ended November $1,400,000 30, 2012, for Toby Zed Company, using the indirect method