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Exercise 234 (Preparation of Operating Activities SectionDirect Method) The income statement of Rodriquez Company is shown below.

This question was answered on Sep 08, 2011. View the Answer
Please see the attched document for my question. The onl y think that needs to be done is to complete the operating activities section of the statement of cash flow based on teh information provided.
Exercise 23-4 (Preparation of Operating Activities Section-Direct Method)   The income statement of Rodriquez 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.)   RODRIQUEZ COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities                                                         Net cash by operating  activities  
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Exercise 23­4 (Preparation of Operating Activities Section­Direct Method) The income statement of Rodriquez Company is shown below. RODRIQUEZ COMPANY Income Statement
For the Year Ended December...

This question was asked on Sep 07, 2011 and answered on Sep 08, 2011.

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