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The income statement of Bonita Company is shown below. BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,570,000 Cost of

The income statement of Bonita Company is shown below.

BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017

Sales revenue

$6,570,000

Cost of goods sold
Beginning inventory

$1,870,000

Purchases

4,350,000

Goods available for sale

6,220,000

Ending inventory

1,590,000

Cost of goods sold

4,630,000

Gross profit

1,940,000

Operating expenses
Selling expenses

490,000

Administrative expenses

680,000

1,170,000

Net income

$770,000

Additional information:

1. Accounts receivable decreased $300,000 during the year.
2. Prepaid expenses increased $170,000 during the year.
3. Accounts payable to suppliers of merchandise decreased $250,000 during the year.
4. Accrued expenses payable decreased $120,000 during the year.
5. Administrative expenses include depreciation expense of $60,000.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Bonita Company, using the indirect method.

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