Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following i
nformation: In addition, Rodriguez bought a small service machine for $5,300.
Required:_____
Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method. (List loss amount and cash outflows as negative amounts.)
Required:_____
Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method. (List loss amount and cash outflows as negative amounts.)
1 answer:
Answer:
Net Cash provided by Operating Activities = $13,000
Explanation:
Rodriguez Company
Statement of Cash flow(Partial)
Cash flows from operating activities Amount
Net Loss $(6,920)
Add: Depreciation $7,600
Add: Increase in Salaries Payable $11,200
Add: Decrease in Accounts receivable $6,400
Add: Amortization of Copy Rights $220
Less: Decrease in Other accrued $(5,500)
liabilities
Net Cash provided by Operating $13,000
Activities
Workings
Accounts receivable decrease = $15,600 − $9,200
Accounts receivable decrease= $6,400
Salaries payable increase = $13,600 − $2,400
Salaries payable increase= $11,200
Other accrued liabilities decrease = $1,300 − $6,800
Other accrued liabilities decrease = - $5,500
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