loader  Loading... Please wait...

Question(s) / Instruction(s):

Exercise 23-4 (Preparation of Operating Activities Section-Direct Method)

The income statement of R odriquez Company is shown below.

 



RODRIQUEZ COMPANY


Income Statement


For the Year Ended December 31, 2010


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

Additional information:

  1. Accounts receivable decreased $310,000 during the year.
  2. Prepaid expenses increased $170,000 during the year.
  3. Accounts payable to suppliers of merchandise decreased $275,000 during the year.
  4. Accrued expenses payable decreased $120,000 during the year.
  5. Administrative expenses include depreciation expense of $60,000.

Instructions

Complete the operating activities section of the statement of cash flows for the year ended December 31, 2010, for Rodriquez Company, using the direct method. (Enter all amounts as positive and subtract where necessary.  List amounts from largest to smallest eg 10, 5, 3, 2.)





Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$2.25

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

You Recently Viewed...



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494