The condensed single-step income statement of Union Chemical Company, a distributor of farm fertilisers and herbicides, appears as follows: Activities-Indirect Method Sales Less: Cost of Goods Sold

\(6,500,000\)

Operating Expenses (including 8. Issued ordinary shares depreciation of 410,000 )

2. Purchased a long-term investment.

9. Declared and issued a share dividend 4. Paid interest.

10. Repaid notes payable 11. Paid employees their wages.

12. Purchased a 60-day government bond.

13. Purchased land.

\(6,500,000\). The ending balance of Accounts Receivable was 850,000 in \(20 \mathrm{x} 1\) and \(1,200,000\) in \(20 \times 2\). Calculate cash receipts from sales in \(20 \times 2\).

Selected accounts from the company's balance sheets for \(20 \times 1\) and \(20 \times 2\) appear as shown below:

Present a schedule of cash flows from operating activities for \(20 \times 2\) using the indirect method.

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Sales 6,500,000 Less: Cost of Goods Sold 3,800,000 Operating Expenses (including depreciation of 410,000) 1,900,000 Income Taxes 200,000 5,900,000 Net Profit 600,000