Question
XYZ Corp provided the following financial information below. XYZ uses the Direct Method to prepare the Statement of Cash Flow. XYZ Corp Income Statement For
XYZ Corp provided the following financial information below. XYZ uses the Direct Method to prepare the Statement of Cash Flow. XYZ Corp Income Statement For the year ended December 31, 2021 Sales $ 6,000,000 Cost of goods sold 3,400,000 Gross profit 2,600,000 Operating expenses Selling expenses 800,000 Administrative expenses 500,000 1 300,000 Operating income 1,300,000 Interest expense 50,000 Income tax expense 80,000 Net Income $ 1, 170,000 ============== ADDITIONAL INFORMATION Accounts receivable increased $300,000 during the year. Prepaid expenses decreased $130,000 during the year Accounts payable to suppliers of merchandise increased $250,000 during the year. 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 $20,000 during the year. What is the total amount of cash flows from Operating Activities ?
A. $5,700.000
B. $980,000
C. $1,060.000
D. $80,000
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