The income statement of Frank Company is shown below: FRANK COMPANY Income Statement For the Year Ended December 31, 2017 Sales $ 8 , 400 , 000 Cost of goods sold 5 , 400 , 000 Gross profit 3 , 000 , 000 Operating expenses Selling expenses $ 500 , 000 Administrative expense 700 , 000 Depreciation expense 90 , 000 Amortization expense 30 , 000 1 , 320 , 000 Net income $ 1 , 680 , 000 \begin{array}{c} ext {FRANK COMPANY}\ ext { Income Statement}\ ext { For the Year Ended December 31, 2017}\\\begin{array}{lr} ext { Sales} & & \$8,400,000\ ext { Cost of goods sold} & & 5,400,000\ ext { Gross profit} & & 3,000,000\ ext { Operating expenses}\ ext { Selling expenses } & \$ 500,000 \ ext { Administrative expense } & 700,000 \ ext { Depreciation expense } & 90,000 \ ext { Amortization expense } & 30,000 & 1,320,000 \ ext { Net income } & & \$1,680,000\end{array}\end{array} FRANK COMPANY Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expense Depreciation expense Amortization expense Net income $500 , 000 700 , 000 90 , 000 30 , 000 $8 , 400 , 000 5 , 400 , 000 3 , 000 , 000 1 , 320 , 000 $1 , 680 , 000 Additional information:1. Accounts receivable increased $400000 during the year.2. Inventory increased $250000 during the year.3. Prepaid expenses increased $200000 during the year.4. Accounts payable to merchandise suppliers increased $100000 during the year.5. Accrued expenses payable increased $160000 during the year.InstructionsPrepare the operating activities section of the statement of cash flows for the year ended December 31 2017 for Frank Company using the direct method.

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The income statement of Frank Company is shown below:   FRANK COMPANY  Income Statement  For the Year Ended December 31, 2017  Sales $ 8 , 400 , 000  Cost of goods sold 5 , 400 , 000  Gross profit 3 , 000 , 000  Operating expenses  Selling expenses  $ 500 , 000  Administrative expense  700 , 000  Depreciation expense  90 , 000  Amortization expense  30 , 000 1 , 320 , 000  Net income  $ 1 , 680 , 000 \begin{array}{c}	ext {FRANK COMPANY}\	ext { Income Statement}\	ext { For the Year Ended December 31, 2017}\\\begin{array}{lr}	ext { Sales} & & \$8,400,000\	ext { Cost of goods sold} & & 5,400,000\	ext { Gross profit} & & 3,000,000\	ext { Operating expenses}\	ext { Selling expenses }  &  \$ 500,000 \	ext { Administrative expense }  &  700,000 \	ext { Depreciation expense }  &  90,000 \	ext { Amortization expense }  &  30,000 & 1,320,000 \	ext { Net income } & & \$1,680,000\end{array}\end{array} FRANK COMPANY  Income Statement  For the Year Ended December 31, 2017  Sales  Cost of goods sold  Gross profit  Operating expenses  Selling expenses   Administrative expense   Depreciation expense   Amortization expense   Net income  ​ $500 , 000 700 , 000 90 , 000 30 , 000 ​ $8 , 400 , 000 5 , 400 , 000 3 , 000 , 000 1 , 320 , 000 $1 , 680 , 000 ​ ​   Additional information:1. Accounts receivable increased $400000 during the year.2. Inventory increased $250000 during the year.3. Prepaid expenses increased $200000 during the year.4. Accounts payable to merchandise suppliers increased $100000 during the year.5. Accrued expenses payable increased $160000 during the year.InstructionsPrepare the operating activities section of the statement of cash flows for the year ended December 31 2017 for Frank Company using the direct method.

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