AC 302 Chapter 23 Question 3

AC 302 Chapter 23 Question 3
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt  and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E23-3 (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:						
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2012, for Rodriquez Company, using the indirect method.						
						
						
	RODRIQUEZ COMPANY					
	Partial Statement of Cash Flows					
	For The Year Ended December 31, 2012					
	Cash flows from operating activities					
	Net income				Amount	
	"Adjustments to reconcile net income to net cash
           provided by operating activities:"					
						
	Title			Amount		
	Title			Amount		
	Title			Amount		
	Title			Amount		
	Title			Amount		
	Title			Amount	Formula	
	Net cash provided by operating activities				Formula