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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.docx

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 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



$1,050,000

Net income
Additional information:

1.
2.
3.
4.
5.

Accounts receivable decreased $310,000 during the year.
Prepaid expenses increased $170,000 during the year.
Accounts payable to suppliers of merchandise decreased $275,000 during the year.
Accrued expenses payable decreased $120,000 during the year.
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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Accounting.doc

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...

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