Rodriguez Tint, Inc. uses the indirect method to prepare the statement of cash f
ID: 2471983 • Letter: R
Question
Rodriguez Tint, Inc. uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:
Rodriguez, Inc.
Income Statement
Year Ended December 31, 2017
Sales Revenue
$150,000
Interest Revenue
6,000
Loss on Sale of Plant Assets
(5,100)
Total Revenues and Gains
$150,900
Cost of Goods Sold
140,000
Salary Expense
119,000
Depreciation Expense
7,000
Other Operating Expenses
13,100
Interest Expense
16,400
Income Tax Expense
6,000
Total Expenses
201,500
Net Income (Loss)
$(50,600)
Additional information provided by the company includes the following:
Current assets, other than cash, decreased by
$5,300.
Current liabilities increased by
$2,300.
Compute the net cash provided by (used for) operating activities.
A.$36,000
B.$10,400
C.$(58,200)
D.$(30,900)
Rodriguez, Inc.
Income Statement
Year Ended December 31, 2017
Sales Revenue
$150,000
Interest Revenue
6,000
Loss on Sale of Plant Assets
(5,100)
Total Revenues and Gains
$150,900
Cost of Goods Sold
140,000
Salary Expense
119,000
Depreciation Expense
7,000
Other Operating Expenses
13,100
Interest Expense
16,400
Income Tax Expense
6,000
Total Expenses
201,500
Net Income (Loss)
$(50,600)
Explanation / Answer
Net Cash for operating activities=
$
Net income = (50600)
+Depreciation 7000
+Loss on sale of Plant Assets 5100
+Decrease in Current Assets 5300
+Increase in Current Liabilities 2300
Thus Net Cash for operating activities $(30,900)
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