The income statement of Mazor Company is presented here.

Additional information:1. Accounts receivable decreased $380,000 during the year, and inventory decreased $300,000.2. Prepaid expenses increased $150,000 during the year.3. Accounts payable to suppliers of merchandise decreased $350,000 during the year.4. Accrued expenses payable decreased $100,000 during the year.5. Administrative expenses include depreciation expense of $110,000.InstructionsPrepare the operating activities section of the statement of cash flows for the year ended November 30, 2012, for Mazor Company, using the indirect method.

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MAZOR COMPANY Income Statement For the Year Ended November 30, 2012 Sales $7,600,000 Cost of goods sold Beginning inventory Purchases $1,900,000 4,400,000 Goods available for sale 6,300,000 Ending inventory 1,600,000 Total cost of goods sold 4,700,000 Gross profit Operating expenses Selling expenses Administrative expenses 2,900,000 450,000 700,000 1,150,000 Net income $1,750,000