Rodriguez Ltd Uses the Indirect Method to Prepare the Cash

question 98

Multiple Choice

Rodriguez Ltd uses the indirect method to prepare the cash flow statement.Refer to the following income statement:
Rodriguez Ltd
Income statement
For the year ended 31 December 2016
$$\begin{array} { | l | l | l | } \hline \text { Sales revenue } & \$ 156,000 & \\\hline \text { Interest revenue } & 6400 & \\\hline \text { Loss on sale of non-current assets } & ( 5000 ) & \\\hline \text { Total revenues and gains } & & \$ 157,400 \\\hline \text { Cost of sales } & 110,000 & \\\hline \text { Salary expense } & 19,000 & \\\hline \text { Depreciation expense } & 7000 & \\\hline \text { Other operating expenses } & 13,200 & \\\hline \text { Interest expense } & 16,200 & \\\hline \text { Income taxexpense } & 5900 & \\\hline \text { Total expenses } & & 171,300 \\\hline \text { Profit (loss) } & & \$ \underline { - 13,900 } \\\hline\end{array}$$
Additional information provided by the company includes the following:
Current assets,other than cash,decreased by $5200
Current liabilities increased by $2400
How much is the net cash provided by operating activities?

• A) $10,200
• B) -21,500
• C) $5700
• D) -$700

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