xYZ Corp ncome Statement the year ended December 31, 2010 Sales Cost of goods sold Gross profit Operating expenses $ 6,000,000 Selling expenses 2,600,000 800,000 500.000 Administrative expenses Operating income interest expense income tax expense Net Income 300,000 1,300,000 50,000 $ 1, 170,000 ADDITIONAL INFORMATION 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 Accrued expenses payable decreased $190,000 during the year. Administrative expenses include depreciation expense of $300,000 Interest payable increased S20.000 during the year. sbo00o 3000 Required : Prepare the Operating Activities section of Statement of Cash Flows using the Direct method