The income statement of Sandhill Company is shown below.

SANDHILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue				$6,940,000
Cost of goods sold
Beginning inventory		$1,910,000
Purchases		4,350,000
Goods available for sale		6,260,000
Ending inventory		1,600,000
Cost of goods sold				4,660,000
Gross profit				2,280,000
Operating expenses
Selling expenses		450,000
Administrative expenses		710,000		1,160,000
Net income				$1,120,000

Additional information:

1.		Accounts receivable decreased $390,000 during the year.
2.		Prepaid expenses increased $150,000 during the year.
3.		Accounts payable to suppliers of merchandise decreased $300,000 during the year.
4.		Accrued expenses payable decreased $90,000 during the year.
5.		Administrative expenses include depreciation expense of $50,000.

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