Reference no: EM132201913

Question - The income statement of Sage Company is shown below.

SAGE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue		$6,380,000
Cost of goods sold
Beginning inventory	$2,080,000
Purchases	4,350,000
Goods available for sale	6,430,000
Ending inventory	1,460,000
Cost of goods sold		4,970,000
Gross profit		1,410,000
Operating expenses
Selling expenses	430,000
Administrative expenses	670,000	1,100,000
Net income		$310,000

Additional information:

1. Accounts receivable decreased $300,000 during the year.

2. Prepaid expenses increased $150,000 during the year.

3. Accounts payable to suppliers of merchandise decreased $280,000 during the year.

4. Accrued expenses payable decreased $110,000 during the year.

5. Administrative expenses include depreciation expense of $70,000.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Sage Company, using the indirect method.