The income statement of Waterway SA is shown below.

WATERWAY SA INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2022
Sales revenue				R$6,500,000
Cost of goods sold
Beginning inventory		R$2,000,000
Purchases		4,700,000
Goods available for sale		6,700,000
Ending inventory		1,600,000
Cost of goods sold				5,100,000
Gross profit				1,400,000
Operating expenses
Selling expenses		420,000
Administrative expenses		780,000		1,200,000
Net income				R$200,000

Additional information:

1.		Accounts receivable decreased R$370,000 during the year.
2.		Prepaid expenses increased R$220,000 during the year.
3.		Accounts payable to suppliers of merchandise decreased R$270,000 during the year.
4.		Accrued expenses payable decreased R$100,000 during the year.
5.		Administrative expenses include depreciation expense of R$60,000.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2022, for Waterway SA, using the indirect method.