E12-22 (Algo) (Supplement A) Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Direct Method) 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 $ 52,900 Expenses Salaries $42,000 Depreciation 7,400 Amortization of copyrights 370 Other expenses 10,100 59,870 Net loss $ (6,970) $ Partial Balance Sheet Accounts receivable Salaries payable Other accrued liabilities Current Prior Year Year 9,600 $ 15,300 14,000 1,700 1,900 6,900 In addition, Rodriguez bought a small service machine for $6,500. Required: 1. Present the operating activities section of the statement of cash flows for Rodriguez Company using the direct method. Assume that other accrued liabilities relate to other expenses on the income statement. (List cash outflows as negative amounts.) RODRIGUEZ COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities