Reference no: EM132521369

Question - The income statement for Strait Horn Inc., a publicly traded company following IFRS, is presented here:

Strait Horn Inc. Income Statement Year Ended December 31, 2019

Sales $5,200,000

Cost of Goods Sold $3,155,000

Gross Profit $2,045,000

Operating Expenses $1,025,000

Profit from Operations $1,020,000

Interest Expense $120,000

Profit before Income Taxes $900,000

Income Taxes $230,000

Profit $670,000

Additional Information:

1. Operating expenses include $50,000 of depreciation expense and a $45,000 impairment loss on property, plant and equipment.

2. Accounts Receivable increased by $100,000

3. Merchandise Inventory increased by $45,000

4. Prepaid expenses related to operating expenses increased by $35,000

5. Accounts Payable to suppliers of merchandise decreased by $90,000

6. Accrued liabilities related to operating expenses decreased by $55,000

7. Interest Payable increased by $55,000 8. Income tax payable increased by $35,000

Required - Prepare the operating activities section of the statement of cash flows using the Indirect Method.