Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information: In addition, Rodriguez bought a small service machine for $5,300. Required:
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.)

Net Cash provided by Operating Activities = $13,000  

Explanation:

                      Rodriguez Company

               Statement of Cash flow(Partial)

Cash flows from operating activities       Amount

Net Loss                                                       $(6,920)

Add: Depreciation                                        $7,600

Add: Increase in Salaries Payable             $11,200

Add: Decrease in Accounts receivable      $6,400

Add: Amortization of Copy Rights               $220  

Less: Decrease in Other accrued               $(5,500)

liabilities

Net Cash provided by Operating              $13,000

Activities

Workings

Accounts receivable decrease = $15,600 − $9,200

Accounts receivable decrease= $6,400

Salaries payable increase = $13,600 − $2,400

Salaries payable increase= $11,200

Other accrued liabilities decrease = $1,300 − $6,800

Other accrued liabilities decrease = - $5,500

answer; at prices that violate government price regulations;