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The income statement of Vince Gill Company is shown below. VINCE GILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Sales revenue $6,941,660

The income statement of Vince Gill Company is shown below.

VINCE GILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014

Sales revenue

$6,941,660

Cost of goods sold

Beginning inventory

$1,892,030

Purchases

4,405,640

Goods available for sale

6,297,670

Ending inventory

1,601,980

Cost of goods sold

4,695,690

Gross profit

2,245,970

Operating expenses

Selling expenses

442,500

Administrative expenses

707,900

1,150,400

Net income

$1,095,570

Additional information:

1.

Accounts receivable decreased $314,580 during the year.

2.

Prepaid expenses increased $178,260 during the year.

3.

Accounts payable to suppliers of merchandise decreased $272,080 during the year.

4.

Accrued expenses payable decreased $127,680 during the year.

5.

Administrative expenses include depreciation expense of $69,010.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2014, for Vince Gill 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).)

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