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, 2008, for Vince Gill Company, using the indirectmethod.

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Vince Gill Company Income Statement For the Year Ended December 31, 2008 $6,900,000 Sales Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold $1,900,000 4,400,000 6,300,000 1,600,000 4,700,000 2,200,000 Gross profit Operating expenses Selling expenses Administrative expenses 450,000 700,000 1.150,000 Net income $1,050,000