The income statement of Rodriquez SA is shown below.

Additional information:

1. Accounts receivable decreased R$310,000 during the year.

2. Prepaid expenses increased R$170,000 during the year.

3. Accounts payable to suppliers of merchandise decreased R$275,000 during the year.

4. Accrued expenses payable decreased R$120,000 during the year.

5. Administrative expenses include depreciation expense of R$60,000.

Instructions

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

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Rodriquez SA Income Statement For the Year Ended December 31, 2022 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 700,000 1,150,000 Net income R$1,050,000