The income statement of Rodriquez Company is shown below.
|
RODRIQUEZ COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012
|
| Sales |
|
|
|
$6,956,970
|
| Cost of goods sold |
|
|
|
|
| Beginning inventory |
|
$1,894,990
|
|
|
| Purchases |
|
4,466,700
|
|
|
| Goods available for sale |
|
6,361,690
|
|
|
| Ending inventory |
|
1,608,070
|
|
|
| Cost of goods sold |
|
|
|
4,753,620
|
| Gross profit |
|
|
|
2,203,350
|
| Operating expenses |
|
|
|
|
| Selling expenses |
|
449,180
|
|
|
| Administrative expenses |
|
707,740
|
|
1,156,920
|
| Net income |
|
|
|
$1,046,430
|
Additional information:
| 1. |
|
Accounts receivable decreased $312,010 during the year. |
| 2. |
|
Prepaid expenses increased $173,870 during the year. |
| 3. |
|
Accounts payable to suppliers of merchandise decreased $268,140 during the year. |
| 4. |
|
Accrued expenses payable decreased $110,740 during the year. |
| 5. |
|
Administrative expenses include depreciation expense of $63,340. |
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Rodriquez Company, using the indirect method. (If an amount reduces the account balance then enter with negative sign.)