Question

The income statement of Rodriquez Company is shownbelow.

 

RODRIQUEZCOMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2012

Sales

 

 

 

$6,954,370

Cost of goodssold

 

 

 

 

   Beginning inventory

 

$1,897,880

 

 

   Purchases

 

4,419,130

 

 

   Goods available for sale

 

6,317,010

 

 

   Ending inventory

 

1,608,870

 

 

   Cost of goods sold

 

 

 

4,708,140

Grossprofit

 

 

 

2,246,230

Operatingexpenses

 

 

 

 

   Selling expenses

 

444,170

 

 

   Administrative expenses

 

691,180

 

1,135,350

Net income

 

 

 

$1,110,880

         

 

Additional information:

 

1.

 

Accountsreceivable decreased $315,430 during the year.

2.

 

Prepaidexpenses increased $176,350 during the year.

3.

 

Accountspayable to suppliers of merchandise decreased $273,190 during theyear.

4.

 

Accruedexpenses payable decreased $117,520 during the year.

5.

 

Administrativeexpenses include depreciation expense of $63,170.

 

Prepare the operating activities section of the statement of cashflows for the year ended December 31, 2012, for Rodriquez Company,using the indirect method.(If an amount reduces the account balance then enter withnegative sign.)