Reference no: EM132545577

The income statement for Hershey Inc., a publicly traded company following IFRS, is presented here:

Longway Inc. Income Statement Year Ended December 31, 2019

Sales $5,250,000

Cost of Goods Sold $3,250,000

Gross Profit $2,000,000

Operating Expenses $1,075,000

Profit from Operations $925,000

Interest Expense $135,000

Profit before Income Taxes $790,000

Income Taxes $225,000

Profit $565,000

Additional Information:

1. Operating expenses include $52,000 of depreciation expense and a $43,000 impairment loss on property, plant and equipment.

2. Accounts Receivable decreased by $115,000

3. Merchandise Inventory increased by $56,000

4. Prepaid expenses related to operating expenses increased by $37,000

5. Accounts Payable to suppliers of merchandise increased by $125,000

6. Accrued liabilities related to operating expenses decreased by $42,000

7. Interest Payable decreased by $51,000

8. Income tax payable decreased by $40,000

Required:

Question 1: Prepare the operating activities section of the statement of cash flows using the Indirect Method.