Data for Eichorn Company are presented in P13-3B. In P13-3B, the income statement of Eichorn Company is presented on the shown below.

Additional information:

1. Accounts receivable decreased $320,000 during the year, and inventory increased $120,000.

2. Prepaid expenses increased $175,000 during the year.

3. Accounts payable to merchandise suppliers increased $50,000 during the year.

4. Accrued expenses payable increased $155,000 during the year.

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

EICHORN COMPANY Income Statement For the Year Ended December 31, 2015 Sales revenue Cost of goods sold $5,400,000 $1,780,000 3,430,000 5,210,000 1,900,000 Beginning inventory Purchases Goods available for sale Ending inventory Total cost of goods sold Gross profit Operating expenses 3,310,000 2,090,000 Depreciation expense Amortization expense Other expenses 105,000 20,000 945,000 1,070,000 $1,020,000 Net income