The income statement of Marin Company is shown below.

MARIN COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER $31,2025$

Sales $$765,000$

Cost of goods sold $542,000$

Gross profit $223,000$

Operating expenses

Selling expenses $$54,000$

Administrative expenses $86,000140,000$

Net income $$83,000$

Additional information:

$1.$ Accounts receivable decreased $$60,000$ during the year.

Inventory increased $$38,000$ during the year.

$3.$ Prepaid expenses increased $$13,000$ during the year.

$4.$ Accounts payable increased $$24,000$ during the year.

$5.$ Accrued expenses payable increased $$6,000$ during the year.

Prepare the operating activities section of the statement of cash flow using the direct method.