E23-4 (Preparation of Operating Activities SectionDirect Method) The income statement of Rodriquez Company is shown below. RODRIQUEZ COMPANY Income Statement For the Year Ended December 31, 2012 Sales $6,900,000 Cost of goods sold Beginning inventory $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 $1,050,000 Instructions Prepare the operating activities section of the statement of cash flows using the direct method