The income statement of Bridgeport Company is shown below.

BRIDGEPORT COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue				$6,910,000
Cost of goods sold
Beginning inventory		$1,910,000
Purchases		4,420,000
Goods available for sale		6,330,000
Ending inventory		1,610,000
Cost of goods sold				4,720,000
Gross profit				2,190,000
Operating expenses
Selling expenses		460,000
Administrative expenses		690,000		1,150,000
Net income				$1,040,000

Additional information:

1.		Accounts receivable decreased $360,000 during the year.
2.		Prepaid expenses increased $190,000 during the year.
3.		Accounts payable to suppliers of merchandise decreased $280,000 during the year.
4.		Accrued expenses payable decreased $100,000 during the year.
5.		Administrative expenses include depreciation expense of $50,000.

Prepare the operating activities section of the statement of cash flows using the direct method.