The income statement of Vantage SA is shown below.
Vantage SA
Income Statement
For the year ended December 31, 2027
| Sales Revenue |
| 8,280,000 |
| Cost of Goods Sold | | |
| Beginning inventory | 2,280,000 | |
| purchases | 5,280,000 | |
| Goods available for sale | 7,560,000 | |
| Ending Inventory | 1,920,000 | |
| Cost of Goods Sold | | 5,640,000 |
| Gross Profit | | 2,640,000 |
| Operating Expenses | | |
| Selling Expenses | 540,000 | |
| Administrative Expenses | 840,000 | 1,380,000 |
| Net Income | | 1,260,000 |
Additional information:
- Accounts Receivable decreased by $372,000 during the year.
- Prepaid expense increased by $204,000 during the year.
- Accounts payable to suppliers of merchandise decreased by $330,000 during the year.
- Accrued expenses payable decreased by $144,000 during the year.
- Administrative expenses include depreciation expense of $72,000.
Instructions: Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2027, for Vantage SA, using the indirect method.