The income statement of Sheridan Company is shown below.

Sheridan Company

Income Statement

For the Year Ended December $31,2025$

$$6,210,000$

Sales revenue

Cost of goods sold

Beginning inventory

Purchases

Goods available for sale

Ending inventory

Cost of goods sold

Gross profit

Operating expenses

Selling expenses

Administrative expenses

Net income

$$2,070,000$

$4,570,000$

$6,640,000$

$1,490,000$

$5,150,000$

$1,060,000$

$450,000$

$570,000$

$1,020,000$

$$40,000$

Additional information:

$1.$

$2$

$3.$

$4.$

$5.$

Accounts receivable decreased $$300,000$ during the year.

Prepaid expenses increased $$170,000$ during the year.

Accounts payable to suppliers of merchandise decreased $$300,000$ during the year.

Accrued expenses payable decreased $$110,000$ during the year.

Administrative expenses include depreciation expense of $$60,000.$

Prepare the operating activities section of the statement of cash flows for the year ended December $31,2025,$ for Sheridan Company,

using the indirect method. $($Show amounts that decrease cash flow with either a $-$ sign e$.$g$.-15,000$ or in parenthesis e$.$g$.(15,000).)$