The income statement of Headland Company is shown below. $6,870,000 HEADLAND COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue 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 Gross profit Operating expenses Selling expenses 450,000 Administrative expenses 700,000 Net income 4,690,000 2,180,000 1,150,000 $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. HEADLAND COMPANY Statement of Cash Flows (Partial) $ $ HAN