Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information: 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.)

Respuesta :

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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