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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, 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 Net income $1,050,000 Additional information: 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 indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1.) RODRIQUEZ COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities $ Adjustments to reconcile net income to cash provided by operating activities: $ Net cash by operating activities $
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