The income statement of Marigold Company is shown below. Marigold Company Income Statement For the Year Ended December 31, 2025 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Net income $1,910,000 4,350,000 6,260,000 1,600,000 450,000 710,000 $6,940,000 4,660,000 2,280,000 1,160,000 $1,120,000

Additional information: 1. Accounts receivable decreased $390,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $90,000 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. The income statement of Marigold Company is shown below