The income statement of Pharoah Company is shown below.

PHAROAH COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue				$6,920,000
Cost of goods sold
Beginning inventory		$1,910,000
Purchases		4,420,000
Goods available for sale		6,330,000
Ending inventory		1,590,000
Cost of goods sold				4,740,000
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 $350,000 during the year.
2.		Prepaid expenses increased $170,000 during the year.
3.		Accounts payable to suppliers of merchandise decreased $280,000 during the year.
4.		Accrued expenses payable decreased $90,000 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.

PHAROAH COMPANY Statement of Cash Flows (Partial) choose the accounting periodDecember 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
select an opening section nameCash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
select an itemCash Payments for Operating ExpensesDecrease in Prepaid ExpensesIncrease in InventoryCash Payments to SuppliersIncrease in Accounts ReceivableIncrease in Prepaid ExpensesDividends ReceivedInterest PaidDecrease in Accounts ReceivableTaxes PaidDecrease in InventoryCash Receipts from Customers Cash Receipts from CustomersCash Payments to SuppliersCash Payments for Operating ExpensesIncrease in InventoryDecrease in InventoryIncrease in Accounts ReceivableDecrease in Accounts ReceivableIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesDividends ReceivedTaxes PaidInterest Paid		$enter a dollar amount
select an itemDividends ReceivedCash Payments to SuppliersTaxes PaidDecrease in InventoryInterest PaidDecrease in Accounts ReceivableIncrease in InventoryCash Receipts from CustomersIncrease in Accounts ReceivableCash Payments for Operating ExpensesIncrease in Prepaid ExpensesDecrease in Prepaid Expenses Cash Receipts from CustomersCash Payments to SuppliersCash Payments for Operating ExpensesIncrease in InventoryDecrease in InventoryIncrease in Accounts ReceivableDecrease in Accounts ReceivableIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesDividends ReceivedTaxes PaidInterest Paid	$enter a dollar amount
select an itemCash Payments for Operating ExpensesIncrease in Accounts ReceivableIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesInterest PaidDecrease in Accounts ReceivableTaxes PaidDecrease in InventoryIncrease in InventoryDividends ReceivedCash Receipts from CustomersCash Payments to Suppliers Cash Receipts from CustomersCash Payments to SuppliersCash Payments for Operating ExpensesIncrease in InventoryDecrease in InventoryIncrease in Accounts ReceivableDecrease in Accounts ReceivableIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesDividends ReceivedTaxes PaidInterest Paid	enter a dollar amount
		enter a subtotal of the two previous amounts
select a closing section nameCash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash		$enter a total amount for the section