Prepare the operating activities section of the statement of cash flows using the direct method.

Novak Corp. Income Statement For the Year Ended November 30, 2019 Sales revenue $7,459,100 Cost of goods sold Beginning inventory $1,986,400 Purchases 4,371,200 Goods available for sale 6,357,600 Ending inventory 1,444,200 Total cost of goods sold 4,913,400 Gross profit 2,545,700 Operating expenses 1,122,500 Net income $1,423,200 Additional information: 1. Accounts receivable increased $198,900 during the year, and inventory decreased $542,200. 2. Prepaid expenses increased $180,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $334,000 during the year. 4. Accrued expenses payable decreased $108,500 during the year. 5. Operating expenses include depreciation expense of $98,000