The income statement of Rodriquez Company

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Question # 00002898 Posted By: expert-mustang Updated on: 10/28/2013 06:44 AM Due on: 10/28/2013

Subject Accounting Topic Accounting Tutorials:

Question

Problem 1

The income statement of Rodriquez Company is shown below.

RODRIQUEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012
Sales		$6,894,600
Cost of goods sold
Beginning inventory	$1,893,870
Purchases	4,375,530
Goods available for sale	6,269,400
Ending inventory	1,608,650
Cost of goods sold		4,660,750
Gross profit		2,233,850
Operating expenses
Selling expenses	440,640
Administrative expenses	703,840	1,144,480
Net income		$1,089,370

Additional information:

1.		Accounts receivable decreased $312,690 during the year.
2.		Prepaid expenses increased $178,550 during the year.
3.		Accounts payable to suppliers of merchandise decreased $281,970 during the year.
4.		Accrued expenses payable decreased $124,510 during the year.
5.		Administrative expenses include depreciation expense of $55,760.

Prepare the operating activities section of the statement of cash flows using the direct method.

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score 2 · Accepted Answer · 10/28/2013 06:45 AM

Solution: The income statement of Rodriquez Company Solution

Tutorial # 00002712 Posted By: expert-mustang Posted on: 10/28/2013 06:45 AM

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in Inventory Dividends Received Taxes Paid Increase in Prepaid Expenses ...

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