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The income statement of Star Vision Co. is presented here. Star Vision Co. Income Statement For the Year Ended November 30, 2020 Sales Revenue 7500000

The income statement of Star Vision Co. is presented here.

Star Vision Co.
Income Statement
For the Year Ended November 30, 2020
Sales Revenue 7500000
Cost of goods sold
Beginning inventory 1900000
Purchases 4400000
Goods available for sale 6300000
Ending inventory 1400000
Total cost of goods sold 4900000
Gross profit 2600000
Operating expenses 1150000
Net income 1450000

Additional information:

  1. Accounts receivable increased $200,000 during the year, and inventory decreased $500,000.
  2. Prepaid expenses increased $175,000 during the year.
  3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.
  4. Accrued expenses payable decreased $105,000 during the year.
  5. Operating expenses include depreciation expense of $85,000.

Instructions:

Prepare the operating activities section of the Star Vision Co. statement of cash flows for the year ended November 30, 2020 using the indirect method.

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