The income statement for Cullumber Ltd., a private company following ASPE, is presented here: CULLUMBER LTD. Income Statement Year Ended November 30, 2018 Sales $8,000,000 Cost of goods sold 4,500,000 Gross profit 3,500,000 Operating expenses 2,010,000 Income from operations 1,490,000 Interest expense 125,000 Income before income tax 1,365,000 Income tax expense 320,000 Net income $1,045,000 Additional information: 1. 2. 3. 4. 5. Operating expenses include $77,000 of depreciation expense and a $105,000 impairment loss on property, plant, and equipment. Accounts receivable increased by $189,000. Inventory decreased by $55,000. Prepaid expenses related to operating expenses increased by $48,000. Accounts payable to suppliers of merchandise decreased by $190,000. Accrued liabilities related to operating expenses decreased by $99,000. Interest payable decreased by $19,000. Unearned revenue that was received from customers decreased by $20,000. Income tax payable increased by $22,000. 6. 7. 8. 9. (a) Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CULLUMBER LTD. Statement of Cash Flows (Partial)-Indirect Method Year Ended November 30, Operating activities al 30, 2018 Adjustments reconcile net income to Question Attempts: 0 of 3 used