Question

Instructer: Canol Pacs Coene: ACCT2402 hy3, MW 11:00 Exi Spring 2015 Book Hoengren's Accounting. 10c Date: Time Assignment: Chapter 16 Class Rodriguez Inc. uses the indirect method to peepare the statement of cash fiows. Reler to the following income statement Redriguer Inc Year Ended Deccnber 31. 2015 Sales Res cne lnterest Revcone $155.000 6000 Lass on Sale of Plasn Assets 15.000) $156 000 Cod of Goods Sol Salary Expense 19.000 Othor Operating F spes Interest Espense 13 000 16.000 lotal Expenses Net Incomne (loss 170 300 5414.300) Additional information provided by the company includes the following Current assets, other than cash, decreased by $5,000 Current liabilities increased by $2,000 How much is the net cash provided by operating activities? OA $(300) OB. $4,700 ОС. $7.300 OD $10.000 Page 2

Answer 1

cashflows from Operating activities:
Net Loss for the year				-14300
Adjustment required for reconciliation
Loss on sale of Plant				5000
Depreciation expense				7000
Decrease in Current assets				5000
Increase in Current liabilities				2000
Net cash provided from Operating activities				4700
Answer is B. $ 4700