The income statement of Whitlock Company is presented here.

WHITLOCK COMPANY Income Statement For the Year Ended November 30, 2020

Sales revenue $7,512,800

Cost of goods sold

Beginning inventory $1,999,000

Purchases 4,323,100 Goods available for sale 6,322,100

Ending inventory 1,334,600

Total cost of goods sold 4,987,500

Gross profit 2,525,300

Operating expenses 1,184,100

Net income $1,341,200

Additional information: 1. Accounts receivable increased $190,400 during the year, and inventory decreased $664,400. 2. Prepaid expenses increased $172,700 during the year. 3. Accounts payable to suppliers of merchandise decreased $338,900 during the year. 4. Accrued expenses payable decreased $108,100 during the year. 5. Operating expenses include depreciation expense of $83,200. Prepare the operating activities section of the statement of cash flows using the direct method.