The income statement of Ayayal Company is shown below. Ayayai Company Income Statement For the Year Ended December 31, 2025 Sales revenue $6,910,000 Cost of goods sold Beginning inventory $1,920,000 Purchases 4,420,000 Goods available for sale 6,340,000 Ending inventory 1,590,000 Cost of goods sold 4,750,000 Gross profit 2,160,000 Operating expenses Selling expenses 450,000 Administrative expenses 710,000 1,160,000 Net income $1,000,000 Additional information: 1 Accounts receivable decreased $370,000 during the year. 2 Prepaid expenses increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $110,000 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. Additional information: 1 Accounts receivable decreased $370,000 during the year 2 Prepaid expenses Increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $110,000 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. AYAYAI COMPANY Partial Statement of Cash Flows $ $ 13