Data for Asquith Company SA are presented in P13-3B.

Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.

ASQUITH COMPANY SA Income Statement For the Year Ended December 31, 2017 Service revenue 5,250,000 Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory 1,780,000 3,430,000 5,210,000 1,900,000 Total cost of goods sold Gross profit Operating expenses 3,310,000 1,940,000 Depreciation expense Amortization expense Other expenses 95,000 20,000 945,000 1,060,000 880,000 Net income