Question 2 of 50 Current Attempt in Progress The income statement of Frank Company is shown below: FRANK COMPANY Income Statement For the Year Ended December 31, 2020 Sales $8,400,000 Cost of goods sold 5,400,000 Gross profit 3,000,000 Operating expenses Selling expenses $500,000 Administrative expense 700.000 Depreciation expense 90.000 Amortization expense 30,000 1,320,000 Net income $1,680,000 Additional information: 1. Accounts receivable Increased $400,000 during the year. Question 2 of 50 Additional information: 1. Accounts receivable increased $400,000 during the year. 2. Inventory increased $250,000 during the year. 3. Prepaid expenses increased $200,000 during the year. Accounts payable to merchandise suppliers increased $100,000 during the year. Accrued expenses payable increased $160.000 during the year. 4. 5. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Frank Company, using the direct method. (Show amounts that decrease cash flow with either a-sign eg -15,000 or in parenthesis es (15,000.) FRANK COMPANY Statement of Cash Flows For the Year Ended December 31, 2020