The income statement of Sheridan Company is shown below.

SHERIDAN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue				$6,870,000
Cost of goods sold
Beginning inventory		$1,890,000
Purchases		4,360,000
Goods available for sale		6,250,000
Ending inventory		1,620,000
Cost of goods sold				4,630,000
Gross profit				2,240,000
Operating expenses
Selling expenses		450,000
Administrative expenses		700,000		1,150,000
Net income				$1,090,000

Additional information:

1.		Accounts receivable decreased $340,000 during the year.
2.		Prepaid expenses increased $170,000 during the year.
3.		Accounts payable to suppliers of merchandise decreased $260,000 during the year.
4.		Accrued expenses payable decreased $100,000 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.

SHERIDAN COMPANY Statement of Cash Flows (Partial) choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
select an opening section name 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 item Cash Payments to SuppliersIncrease in InventoryCash Payments for Operating ExpensesInterest PaidDividends ReceivedDecrease in InventoryIncrease in Accounts ReceivableDecrease in Accounts ReceivableIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesTaxes PaidCash Receipts from Customers		$enter a dollar amount
select an item Cash Receipts from Customers Cash Payments to Suppliers Increase in Accounts Receivable Cash Payments for Operating Expenses Decrease in Accounts Receivable Dividends Received Taxes Paid Interest Paid Increase in Prepaid Expenses Decrease in Prepaid Expenses Increase in Inventory Decrease in Inventory	$enter a dollar amount
select an item Decrease in Accounts Receivable Increase in Accounts Receivable Increase in Prepaid Expenses Interest Paid Increase in Inventory Cash Payments for Operating Expenses Decrease in Inventory Cash Receipts from Customers Decrease in Prepaid Expenses Dividends Received Taxes Paid Cash Payments to Suppliers	enter a dollar amount
		enter a subtotal of the two previous amounts
select a closing section name 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