Reference no: EM131812801
Question - Preparation of Operating Activities Section-Direct Method
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
Instructions - Prepare the operating activities section of the statement of cash flows using the direct method.
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