The income statement of Culver Company is shown below. CULVER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,880,000 Cost of goods sold Beginning inventory $1,880,000 Purchases 4,440,000 Goods available for sale 6,320,000 Ending inventory 1,620,000 Cost of goods sold 4,700,000 Gross profit 2,180,000 Operating expenses Selling expenses 460,000 Administrative expenses 700,000 1,160,000 Net income $1,020,000 Additional information: 1. 2. 3. Accounts receivable decreased $380,000 during the year. Prepaid expenses increased $150,000 during the year. Accounts payable to suppliers of merchandise decreased $250,000 during the year. Accrued expenses payable decreased $90,000 during the year. Administrative expenses include depreciation expense of $50,000. 4. 5. Prepare the operating activities section of the statement of cash flows using the direct method. Question 3 of 9 Net income $1,020,000 Additional information: 1. 2. 3. Accounts receivable decreased $380,000 during the year. Prepaid expenses increased $150,000 during the year. Accounts payable to suppliers of merchandise decreased $250,000 during the year. Accrued expenses payable decreased $90,000 during the year. Administrative expenses include depreciation expense of $50,000. 4. 5. Prepare the operating activities section of the statement of cash flows using the direct method. CULVER COMPANY Statement of Cash Flows (Partial) $ $ $