Question

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

Income Statement for Current Year Service revenue $ 52,500
Expenses Salaries $ 42,000
Depreciation 8,100
Amortization of copyrights 270
Other expenses 10,000 60,370
Net loss $ (7,870)
Partial Balance Sheet
Current Year Prior Year Accounts receivable $ 8,800 $ 15,200
Salaries payable 13,000 1,300
Other accrued liabilities 3,000 6,300
In addition, Rodriguez bought a small service machine for $5,900.
Required: 1. 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.)

Answer 1

Answer: Please find answers in explanation column

Step-by-step explanation:

Rodriguez Company

Statement of Cash flow(Partial)

Cash flows from operating activities Amount

Net Loss $(7,870)

Add: Depreciation $ 8,100

Add: Increase in Salaries Payable $11,700 ($13,000 − $1,300)

Add: Decrease in Accounts receivable $6,400 ($15,200 − $8,800)

Add: Amortization of Copy Rights $270

Less: Decrease in Other accrued $(3,300) ($3,000− $6,300)

liabilities

Net Cash provided by Operating $15,300

Activities