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  3. question 4-2 (10 marks): the income statement of p

QUESTION 4-2 (10 marks): The income statement of Parkhurst Limited is shown below: PARKHURST LIMITED...

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QUESTION 4-2 (10 marks): The income statement of Parkhurst Limited is shown below: PARKHURST LIMITED Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit......... Operating expenses Selling and administrative expenses. $ 1,300,000 Depreciation expense 125,000 Profit.... $10,000,000 6,200,000 3,800,000 1,425,000 $ 2,375,000 Additional information: 1. Accounts receivable decreased $250,000 during the year. 2. Inventory decreased $159,000 during the year. 3. Prepaid expenses increased $50,000 during the year. 4. Accounts payable to merchandise suppliers increased $140,000 during the year. 5. Accrued expenses payable increased $100,000 during the year. Instructions Prepare the operating activities section of the cash flow statement for the year ended December 31, 2021, for Stewart Limited, using the direct method

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