The income statement of Toby Zed Company is presented here.

Additional information:1. Accounts receivable increased $250,000 during the year, and inventory decreased $500,000.2. Prepaid expenses increased $150,000 during the year.3. Accounts payable to suppliers of merchandise decreased $340,000 during the year.4. Accrued expenses payable decreased $100,000 during the year.5. Operating expenses include depreciation expense of $90,000.InstructionsPrepare the operating activities section of the statement of cash flows for the year ended November 30, 2012, for Toby Zed Company, using the indirectmethod.

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TOBY ZED COMPANY Income Statement For the Year Ended November 30, 2012 $7.700,000 Sales revenue Cost of goods sold Beginning inventory $1,900,000 Purchases 4,400,000 Goods available for sale 6,300,000 Ending inventory 1.400,000 Total cost of goods sold 4,900,000 Gross profit Operating expenses 2,800,000 1,150,000 $1.650,000 Net income