The income statement of Whispering Company is shown below.

WHISPERING COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue				$6,850,000
Cost of goods sold
Beginning inventory		$1,880,000
Purchases		4,410,000
Goods available for sale		6,290,000
Ending inventory		1,610,000
Cost of goods sold				4,680,000
Gross profit				2,170,000
Operating expenses
Selling expenses		450,000
Administrative expenses		710,000		1,160,000
Net income				$1,010,000

Additional information:

1.		Accounts receivable decreased $380,000 during the year.
2.		Prepaid expenses increased $150,000 during the year.
3.		Accounts payable to suppliers of merchandise decreased $260,000 during the year.
4.		Accrued expenses payable decreased $110,000 during the year.
5.		Administrative expenses include depreciation expense of $50,000.

Prepare the operating activities section of the statement of cash flows using the direct method.

Exercise 23-4 The income statement of Whispering Company is shown below. WHISPERING COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,850,000 Cost of goods sold Beginning inventory $1,880,000 Purchases 4,410,000 Goods available for sale 6,290,000 Ending inventory 1,610,000 Cost of goods sold 4,680,000 Gross profit 2,170,000 Operating expenses Selling expenses 450,000 Administrative expenses 710,000 1,160,000 Net income $1,010,000 Additional information: 1. Accounts receivable decreased $380,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $110,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method. WHISPERING COMPANY Statement of Cash Flows (Partial) For the Year Ended December 31, 2017 Cash Flows from Operating Activities Cash Receipts from Customers 7230000 S Cash Payments to Suppliers Cash Payments for Operating Expenses Net Cash Provided by Operating Activities $ Click if you would like to Show Work for this question: Open Show Work