Sales 8,522,000

Cost of Good Sold

Beg. Inventory 1,500,000

Purchases 5,600,000

Goods Avail. for sale 7,100,000

Ending Inventory 2,000,000

Cost of Good Sold 5,100,000 5,100,000

Gross Margin 3,422,000

Operating Expenses

Depreciation Expense 423,666

Selling Expenses 150,000

Admin Expenses 250,000 823,666

Net Income 2,598,334

Other information

A/R decrease 150,000

Pre-paid Expense 50,000

A/P decreased 32,566

Wages Payable increased 32,556

Office supplies decreased 15,222

Income Taxes payable decreased 14,256

Prepare the operations activity section of the statement of cash flows for year ended December 31, 2019 using indirect method. Show your work

pre paid expense decreased 50,000