Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2018, for Nat Corporation using the indirect method.

Income Statement Year Ended November 30, 2018 Sales $8,100,000 Cost of goods sold 5,200,000 Gross profit Salaries expense Operating expenses Depreciation expense Income before income tax Income tax expense 2,900,000 856,000 222,000 82,000 1,740,000 245,000 Net income $1,495,000 Additional information: 1. 2. 3. Accounts receivable increased $370,000 during the year, and inventory decreased $540,000. Prepaid expenses, which relate to administrative expenses, increased $130,000 during the year. Accounts payable to suppliers of merchandise decreased $380,000 during the year. Accrued salaries payable decreased $115,000 during the year. Income tax payable increased $70,000 during the year. 4. 5. Statement of Cash Flows (Partial) Cash flows from operating activities $ Adjustments to reconcile net income to $ $ $