Prob 12-3B Eichorn Company Income Statement For the Year Ended Dec 31, 2022 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 Net Income 945,000 1,070,000 1,020,000 Additional information: 1 Accte Rachle decreased $320 000 during the vear and Inventon/ increased $120 000 Focus Net income 1,020,000 Additional information: 1. Accts Recble 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. Instructions: Prepare the operating activities section of the statement of cash flows for the year ended Dec 31, 2022 for Eichorn Company using the indirect method. Eichorn Corp. Statement of Cash Flows (partial) For the Year Ended December 31, 2022 Cash flows from operating activities Net Income Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense 105000 Amortization expense 20000 Decrease in accounts receivable 1145000 Increase in inventory Increase in prepaid expenses Increase in accounts payable Increase in accrued expenses payable Net cash provided by operating activities 1020000 355,000