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.

Vince Gill Company Income Statement For the Year Ended December 31, 2020 Sales revenue $6,900,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,400,000 Goods available for sale 6,300,000 Ending inventory 1,600,000 Cost of goods sold 4,700,000 Gross profit Operating expenses Selling expenses Administrative expenses 2,200,000 450,000 700,000 1,150,000 Net income $1,050,000