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00 T-Mobile 7:55 PM 42%. mathxl.com Horngren S Financial Manag My Courses- alamo

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Question

00 T-Mobile 7:55 PM 42%. mathxl.com Horngren S Financial Manag My Courses- alamo.edu MyLab and Mastering Course Home Review Test- Kendra Logan Kendra Logan 5/1/16 7:55 PM Review Quiz: Chapter 14 Quiz Close Score: 0 of 1 pt 80f 10 Test Score: 60%, 6 of 10 pts 14.2-45 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, 2015 $155,000 6,000 (5.000) Sales Revenue Interest Revenue Loss on Sale of Plant Assets Total revenues and gains Cost of Goods Sold Salary Expense Depreciation Expense $156,000 110,000 19,000 7,000 A. $10,000 B. $(300) C. $4,700 XD. $7,300 Move your pointer over or tap on the red indicators to see incorrect answers.

Explanation / Answer

Calculation of Net Cash Provided by Operating Activities:

(Using Indirect Method of Cash Flow Statement)

Net Income (loss )

$       (14,300)

Add: Loss on Sale of Plant Assets

$            5,000

Add: Depreciation Expense

$            7,000

Add: Decrease in Current assets other than cash

$            5,000

Add: Increase in current Liabilities

$            2,000

Net Cash Provided by Operating Activities

$            4,700

Calculation of Net Cash Provided by Operating Activities:

(Using Indirect Method of Cash Flow Statement)

Net Income (loss )

$       (14,300)

Add: Loss on Sale of Plant Assets

$            5,000

Add: Depreciation Expense

$            7,000

Add: Decrease in Current assets other than cash

$            5,000

Add: Increase in current Liabilities

$            2,000

Net Cash Provided by Operating Activities

$            4,700