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The income statement of Rodriquez Company is shown below. RODRIQUEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012 Sales $6,954,370 Cost of goods

The income statement of Rodriquez Company is shown below.

RODRIQUEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012
Sales
$6,954,370
Cost of goods sold
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
Gross profit
2,246,230
Operating expenses
Selling expenses
444,170
Administrative expenses
691,180
1,135,350
Net income
$1,110,880

Additional information:

1. Accounts receivable decreased $315,430 during the year.
2. Prepaid expenses increased $176,350 during the year.
3. Accounts payable to suppliers of merchandise decreased $273,190 during the year.
4. Accrued expenses payable decreased $117,520 during the year.
5. Administrative expenses include depreciation expense of $63,170.

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.)

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