Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information:

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			$	52,000
Expenses
Salaries	$	42,500
Depreciation		8,300
Amortization of copyrights		310
Other expenses		10,400		61,510
Net loss			$	(9,510)

 

Partial Balance Sheet	Current Year		Prior Year
Accounts receivable	$	9,800	$	15,300
Salaries payable		13,700		1,400
Other accrued liabilities		2,800		6,600

In addition, Rodriguez bought a small service machine for $5,100.

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.)

Answer
 

Explanation:

1.

Accounts receivable decrease = ($9,800 − $15,300) = $5,500

Salaries payable increase = ($13,700 − $1,400) = $12,300

Other accrued liabilities decrease = ($2,800 − $6,600) = ($3,800)