The income statement of Marin Company is shown below.

MARIN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
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.

Prepare the operating activities section of the statement of cash flows using the direct method, MARIN COMPANY statement of Cash Flows (Partial) eTextbook and Media Save for lates