The income statement of Frank Company is shown below:

\begin{array}{c}\text {FRANK COMPANY}\\\text { Income Statement}\\\text { For the Year Ended December 31, 2017}\\\\\begin{array}{lr}\text { Sales}&&\$8,400,000\\\text { Cost of goods sold}&&5,400,000\\\text { Gross profit}&&3,000,000\\\text { Operating expenses}\\\text { Selling expenses } & \$ 500,000 \\\text { Administrative expense } & 700,000 \\\text { Depreciation expense } & 90,000 \\\text { Amortization expense } & 30,000&1,320,000 \\\text { Net income }&&\$1,680,000\end{array}\end{array}

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.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31 2017 for Frank Company using the direct method.

Plexis Company Reported Net Income of $148000

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