Question
The income statement of Rodriquez Company is shown below.
|
RODRIQUEZCOMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012 |
||||
|
Sales |
|
|
|
$6,818,660 |
|
Cost of goods sold |
|
|
|
|
|
Beginning inventory |
|
$1,899,830 |
|
|
|
Purchases |
|
4,305,520 |
|
|
|
Goods available for sale |
|
6,205,350 |
|
|
|
Ending inventory |
|
1,609,960 |
|
|
|
Cost of goods sold |
|
|
|
4,595,390 |
|
Gross profit |
|
|
|
2,223,270 |
|
Operating expenses |
|
|
|
|
|
Selling expenses |
|
447,790 |
|
|
|
Administrative expenses |
|
702,490 |
|
1,150,280 |
|
Net income |
|
|
|
$1,072,990 |
Additional information:
|
1. |
|
Accounts receivable decreased $315,400 during the year. |
|
2. |
|
Prepaid expenses increased $171,300 during the year. |
|
3. |
|
Accounts payable to suppliers of merchandise decreased $268,860during the year. |
|
4. |
|
Accrued expenses payable decreased $127,630 during theyear. |
|
5. |
|
Administrative expenses include depreciation expense of$50,600. |
Prepare the operating activities section of the statement of cashflows using the direct method.
