This question is kind of long....Sorry, I hope someone has time to help out.

I don't know how to answer this question. I am confused

Breckenridge LTD
Income Statement
Year ended November 30, 2005

Sales $7,200,000
Cost of Goods Sold

Beginning Inventory $1,900,000

Purchases 4,400 000
Goods available for sale 6,300,000
Ending Inventory 1,400 000 4,900,000
Gross Profit 2,300,000
Operating Expenses 1,050,000
Income before income tax 1,250,000
Income tax expense 375,000
Net Income $875,000

Additional Information:

1) Accounts receivable decreased by $200,000 during the year.
2) Prepaid expenses increased by $150,000 during the year.
3) Accounts payable to suppliers or merchandise decreased by $300,000 during the year.
4) Accured expenses payable decreased by $100,000 during the year.
5) Operating expenses include an amortization expense of $90,000
6) Income taxes payable increased by $20,000 during the year.


Question:

Prepare the operating activities section of the cash flow statement for the year ended November 30 2005 using the direct method.

thanks!!!!

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