The income statement of Monty Company is shown below. MONTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,930,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory $1,900,000 4,350,000 6,250,000 1,610,000 Cost of goods sold 4,640,000 2,290,000 Gross profit Operating expenses Selling expenses Administrative expenses Net income 460,000 700,000 1,160,000 $1,130,000 Additional information: 1. Accounts receivable decreased $360,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 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. MONTY COMPANY Statement of Cash Flows (Partial) Click if you would like to Show Work for this question: Open Show Work