The income statement of Monty Company is shown below. MONTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,940,000 $ 1,910,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory 4,350,000 6,260,000 1,600,000 Cost of goods sold Gross profit 4,660,000 2,280,000 Operating expenses Selling expenses 450,000 Administrative expenses 710,000 1,160,000 Net income $ 1,120,000 Additional information: 1. 2. 3. Accounts receivable decreased $ 390,000 during the year. Prepaid expenses increased $ 150,000 during the year. Accounts payable to suppliers of merchandise decreased $ 300,000 during the year. Accrued expenses payable decreased $ 90,000 during the year, Administrative expenses include depreciation expense of $ 50,000. 4. 5. Prepare the operating activities section of the statement of cash flows using the direct method. MONTY COMPANY Statement of Cash Flows (Partial) Prepare the operating activities section of the statement of cash flows using the direct method. MONTY COMPANY Statement of Cash Flows (Partial)