Data for the Vince Gill Company are presented in E23-3.

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

Data From E 23-3:

The income statement of Vince Gill Company is shown below.

                         

Additional information:
  1. Accounts receivable decreased $360,000 during the year.
  2. Prepaid expenses increased $170,000 during the year.
  3. Accounts payable to suppliers of merchandise decreased $275,000 during the year.
  4. Accrued expenses payable decreased $100,000 during the year.
  5. Administrative expenses include depreciation expense of $60,000.

Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2014, for Vince Gill Company, using the indirect method.