Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and Income statement are presented below, along with additional information Current Year Prior Year Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accumulated depreciation $ 3,300 700 100 350 (50) $ 4,400 5 350 300 1.000 2.750 $4,400 $4,000 500 50 0 0 $4,550 $1,100 0 1.000 2.450 $4.550 Wages payable Short-tern note payable Common stock Retained earnings Income Statement for Current Year Service revenue Depreciation expense Salaries expense Other expenses Net income $34,000 50 30,000 2,650 300 Additional Data: a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash c. Purchased equipment for $350 cash at the beginning of the current year and recorded $50 of depreciation expense at the end of the current year d. At the end of the current year, the company signed a short-term note payable to the bank for $300 Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) COMPUTER SERVICE AND REPAIR Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 S 0 E12-8 (Algo) Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Indirect Method) LO12-2 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 $ 51,300 Expenses Salaries $42,300 Depreciation B. 400 Amortization of copyrights Other expenses 9.900 60, 800 Net loss $(9,500) 200 Partial Balance sheet Accounts receivable Salarios payable other accrued liabilities Current Prior Year Year $ 8,200 $ 16,000 14,900 1,800 2,000 5,800 In addition, Rodriguez bought a small service machine for $5,500 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.) RODRIGUEZ COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities 26 BE Next > Partial Balance Sheet Accounts receivable Salaries payable Other accrued liabilities Current Prior Year Year $ 8,200 $ 16,000 14,900 1,800 2,000 5,800 In addition, Rodriguez bought a small service machine for $5,500. 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.) RODRIGUEZ COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities: 5 $ 0
