The income statement of Hauser Company is presented on the next page. Additional information:
1. Accounts receivable decreased $290,000 during the year, and inventory increased $140,000.
2. Prepaid expenses increased $175,000 during the year.
3. Accounts payable to merchandise suppliers increased $63,000 during the year.
4. Accrued expenses payable increased $145,000 during the year.
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HAUSER COMPANY
Income Statement
For the Year Ended December 31, 2012
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Sales
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$5,200,000
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Cost of goods sold
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Beginning inventory
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$1,780,000
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Purchases
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3,430,000
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Goods available for sale
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5,210,000
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Ending inventory
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1,920,000
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Total cost of goods sold
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3,290,000
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Gross profit
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1,910,000
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Operating expenses
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Selling expenses
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420,000
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Administrative expense
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525,000
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Depreciation expense
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105,000
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Amortization expense
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15,000
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1,065,000
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Net income
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$ 845,000
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Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Hauser Company, using the indirect method.