Preparation of Operating Activities Section Indirect Method, Periodic Inventory) The income statement of Rodriquez Company is shown below RODRIQUEZ COMPANY Income Statement For the Year Ended December 31, 2012 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, 2012, for Rodriquez Company, using the indirect method I have included an attached word document as well E233 (Preparation of Operating Activities SectionIndirect Method, Periodic Inventory) The income statement of Rodriquez Company is shown below RODRIQUEZ COMPANY Income Statement For the Year Ended December 31, 2012 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, 2012, for Rodriquez Company, using the indirect method

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Preparation of Operating Activities Section-Indirect Method, Periodic Inventory) The income statement of Rodriquez Company is shown below. RODRIQUEZ COMPANY Income Statement For the Year Ended

Preparation of Operating Activities Section-Indirect Method, Periodic Inventory) The income statement of Rodriquez Company is shown below. RODRIQUEZ COMPANY Income Statement For the Year Ended December 31, 2012 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, 2012, for Rodriquez Company, using the indirect method. I have included an attached word document as well. image text in transcribed

E233 (Preparation of Operating Activities SectionIndirect Method, Periodic Inventory) The income statement of Rodriquez Company is shown below. RODRIQUEZ COMPANY Income Statement For the Year Ended December 31, 2012 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, 2012, for Rodriquez Company, using the indirect method