Data for the Rodriquez SA are presented in E23.3.

Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.

Rodriquez SA INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 Sales revenue R$6,900,000 Cost of goods sold Beginning inventory R$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 1,150,000 700,000 R$1,050,000 Net income