The income statement of Waterway Company is shown below.

WATERWAY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue				$6,250,000
Cost of goods sold
Beginning inventory		$1,990,000
Purchases		4,470,000
Goods available for sale		6,460,000
Ending inventory		1,700,000
Cost of goods sold				4,760,000
Gross profit				1,490,000
Operating expenses
Selling expenses		410,000
Administrative expenses		700,000		1,110,000
Net income				$380,000

Additional information:

1.		Accounts receivable decreased $280,000 during the year.
2.		Prepaid expenses increased $160,000 during the year.
3.		Accounts payable to suppliers of merchandise decreased $250,000 during the year.
4.		Accrued expenses payable decreased $110,000 during the year.
5.		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, 2020, for Waterway Company, using the indirect method.

WATERWAY COMPANY Statement of Cash Flows (Partial), $ Adjustments to reconcile net income to