The income statement of Sandhill Company is shown below. Sandhill Company Income Statement For the Year Ended December 31, 2025 Sales revenue $6,880,000 Cost of
The income statement of Sandhill Company is shown below. Sandhill Company Income Statement For the Year Ended December 31, 2025 Sales revenue $6,880,000 Cost of goods sold Beginning inventory $1,880,000 Purchases 4,440,000 Goods available for sale 6,320,000 Ending inventory 1,620,000 Cost of goods sold 4,700,000 Gross profit 2,180,000 Operating expenses Selling expenses 460,000 Administrative expenses 700,000 1,160,000 Net income $1,020,000 Additional information: 1. Accounts receivable decreased $380,000 during the year. 2, Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $250,000 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
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