The income statement of Concord Company is shown below.

CONCORD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue				$6,870,000
Cost of goods sold
Beginning inventory		$1,920,000
Purchases		4,370,000
Goods available for sale		6,290,000
Ending inventory		1,600,000
Cost of goods sold				4,690,000
Gross profit				2,180,000
Operating expenses
Selling expenses		450,000
Administrative expenses		700,000		1,150,000
Net income				$1,030,000

Additional information:

1.		Accounts receivable decreased $400,000 during the year.
2.		Prepaid expenses increased $160,000 during the year.
3.		Accounts payable to suppliers of merchandise decreased $260,000 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.