USE INDIRECT METHOD

The profit or loss section of the statement of comprehensive income of ITS NOT OK NOT TO BE OK company for the year ended December 31, 2020 as reproduced below:

Sales- 6,100,000

COGS- 3,700,000

GROSS PROFIT- 2,400,000

Gain on sale of equipment- 100,000

Salaries expense- (820,000)

Insurance expense- 380,000

Depreciation expense- 220,000

Profit before interest and income tax -1,080,000

Interest Expense- 120,000

Profit before income tax- 960,000

Income tax expense- 288,000

Profit- 672,000

The following info is also available

Decrease in AR- 120,000

Increase in Inventory- 280,000

Decrease in AP- 160,000

Increase in Salaries Payable- 100,000

Increase in Prepaid Insurance- 180,000

Decrease in interest payable- 30,000

Increase in income tax payable- 18,000

REQUIRE: PREPARE INDIRECT METHOD