PRONGHORN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,900,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,880,000 4,390,000 6,270,000 1,620,000 4,650,000 2,250,000 Gross profit Operating expenses 460,000 700,000 Selling expenses Administrative expenses 1,160,000 $1,090,000 Net income Additional information: 1. Accounts receivable decreased $400,000 during the year 2. Prepaid expenses increased $160,000 during the year 3. Accounts payable to suppliers of merchandise decreased $270,000 during the year 4. Accrued expenses payable decreased $100,000 during the year 5. Administrative expenses include depreciation expense of $60,000 Prepare the operating activities section of the statement of cash flows using the direct method. PRONGHORN COMPANY Statement of Cash Flows (Partial)