(Preparation of Operating Activities Section—Indirect Method, Periodic Inventory) The income statement of Rodriquez Company is shown below.
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RODRIQUEZ COMPANY |
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Sales |
$6,900,000 |
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Cost of goods sold |
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Beginning inventory |
$1,900,000 |
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Purchases |
4,400,000 |
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Goods available for sale |
6,300,000 |
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Ending inventory |
1,600,000 |
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Cost of goods sold |
4,700,000 |
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Gross profit |
2,200,000 |
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Operating expenses |
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Selling expenses |
450,000 |
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Administrative expenses |
700,000 |
1,150,000 |
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Net income |
$1,050,000 |
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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 indirect method.