Question
E23.3 (LO2, 3) (Preparation of Operating Activities SectionIndirect Method, Periodic Inventory) The income statement of Rodriquez SA is shown below. Rodriquez SA INCOME STATEMENT FOR
E23.3 (LO2, 3) (Preparation of Operating Activities SectionIndirect Method, Periodic Inventory) The income statement of Rodriquez SA is shown below.
Rodriquez SA INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 | ||
Sales revenue | R$6,900,000 | |
Cost of goods sold | ||
Beginning inventory | R$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 | R$1,050,000 |
Additional information:
1. Accounts receivable decreased R$310,000 during the year.
2. Prepaid expenses increased R$170,000 during the year.
3. Accounts payable to suppliers of merchandise decreased R$275,000 during the year.
4. Accrued expenses payable decreased R$120,000 during the year.
5. Administrative expenses include depreciation expense of R$60,000. Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2019, for Rodriquez SA, using the indirect method.
!!!! E23.4 (LO2, 3) (Preparation of Operating Activities SectionDirect Method) Data for the Rodriquez SA are presented in E23.3.
Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To prepare the operating activities section of the statement of cash flows for Rodriquez SA for the year ended December 31 2019 using both the indirec...Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started