XYZ Corp Income Statement For the year ended December 31, 2010 Sales Cost of goods sold Gross profit Operating expenses $ 6,000,000 2,600,000 Selling expenses 800,000 500,000 Administrative expenses Operating income Interest expense income tax expense Net income 1300,000 1,300,000 50,000 $ 1,170,000 ADDITIONAL INFORMATION 1. Accounts receivable increased $300,000 during the year. 2. Prepaid expenses decreased $130,000 during the year 3. Accounts payable to suppliers of merchandise increased $250,000 during the year. 4. Inventory increased $400,000 during the year 5. Accrued expenses payable decreased $190,000 during the year 6. Administrative expenses include depreciation expense of $300,000 7. Interest payable increased $20,000 during the year Required : Prepare the Operating Activities section of Statement of Cash Flows using the Direct method