The income statement of Rodriquez Company is shown below:
	RODRIQUEZ COMPANY
	Income Statement
	For The Year Ended December 31, 2012
	Sales					$6,900,000
	Cost of goods sold
	Beginning inventory				$1,900,000
	Purchases				4,400,000
	Goods available for sale				6,300,000
	Ending inventory				1,600,000
	Cost of goods sold					4,700,000
	Gross profit					2,200,000
	Operating expenses
	Selling expenses				450,000
	Administrative expenses				700,000	1,150,000
	Net income					$1,050,000
Additional information:
1. Accounts receivable decreased			$310,000	during the year.
2. Prepaid expenses increased			$170,000	during the year.
3. Accounts payable to suppliers of merchandise decreased					$275,000	during the year.
4. Accrued expenses payable decreased			$120,000	during the year.
5. Administrative expenses include depreciation expense of					$60,000
Instructions:
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Rodriquez Company, using the direct method.