Problem 1The income statement of Rodriquez Company is shown below.RODRIQUEZ COMP

Problem 1The income statement of Rodriquez Company is shown below.RODRIQUEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31 2012Sales$6894600Cost of goods sold Beginning inventory$1893870 Purchases4375530 Goods available for sale6269400 Ending inventory1608650 Cost of goods sold4660750Gross profit2233850Operating expenses Selling expenses440640 Administrative expenses7038401144480Net income$1089370 Additional information:1.Accounts receivable decreased $312690 during the year.2.Prepaid expenses increased $178550 during the year.3.Accounts payable to suppliers of merchandise decreased $281970 during the year.4.Accrued expenses payable decreased $124510 during the year.5.Administrative expenses include depreciation expense of $55760.Prepare the operating activities section of the statement of cash flows using the direct method.