The income statement of Bob Christiana Company is presented here.

BOB CHRISTIANA COMPANY

Income Statement

For the Year Ended November 30, 2012

Sales revenue		$7,700,000
Cost of goods sold
Beginning inventory Purchases	$1,900,000 4,400,000
Goods available for sale Ending inventory	6,300,000 1,400,000
Total cost of goods sold		4,900,000
Gross profit		2,800,000
Operating expenses		1,150,000
Net income		$1,650,000

Additional information:

1. Accounts receivable increased $380,000 during the year, and inventory decreased $250,000.

2. Prepaid expenses increased $170,000 during the year.

3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.

4. Accrued expenses payable decreased $50,000 during the year.

5. Operating expenses include depreciation expense of $110,000.

Instructions

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2012, for Bob Christiana Company, using the indirect method