The income statement of Headland Company is shown below. Headland Company Income Statement For the Year Ended December 31, 2025 Sales revenue $6,250,000 Cost of goods sold Beginning inventory $1,990,000 Purchases 4,470,000 Goods available for sale 6,460,000 Ending inventory 1,700,000 Cost of goods sold Gross profit 4,760,000 1,490,000 Operating expenses Selling expenses 410,000 Administrative expenses 700,000 1,110,000 Net income $380,000 Additional information: Accounts receivable decreased $280,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $250,000 during the year. 4. 5. Accrued expenses payable decreased $110,000 during the year. 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, 2025, for Headland Company, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000)) HEADLAND COMPANY Partial Statement of Cash Flows For the ear Ended December 31, 2025 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities : Depreciation Expense 60000 380000 280000 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 60000 Decrease in Accounts Receivable 280000 Increase in Prepaid Expenses -160000 Decrease in Accounts Payable -250000 Decrease in Accrued Expenses Payable -110000 Decrease in Inventory Cash Flows from Operating Activities 380000 200000