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The income statement of Pronghorn Company is presented here. Pronghorn Company Income Statement For the Year Ended November 30, 2025 Sales revenue $7,734,400 Cost of

The income statement of Pronghorn Company is presented here.

Pronghorn Company Income Statement For the Year Ended November 30, 2025

Sales revenue

$7,734,400

Cost of goods sold

Beginning inventory

$1,920,800

Purchases

4,344,800

Goods available for sale

6,265,600

Ending inventory

1,585,700

Total cost of goods sold

4,679,900

Gross profit

3,054,500

Operating expenses

Selling expenses

454,100

Administrative expenses

713,100

1,167,200

Net income

$1,887,300

Additional information:

1.

Accounts receivable decreased $386,500 during the year, and inventory decreased $335,100.

2.

Prepaid expenses increased $151,600 during the year.

3.

Accounts payable to suppliers of inventory decreased $343,800 during the year.

4.

Accrued expenses payable decreased $101,900 during the year.

5.

Administrative expenses include depreciation expense of $109,400.

Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2025, for Pronghorn Company, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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