Rodriguez Company completed its income statement and balance sheet for 2015 and provided the following information:

In Addition, Rodriguez bought a small service machine for $ 5000.

Required:
1. Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method.
2. What were the major reasons that Rodriguez was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net income important to financialanalysts?

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Income Statement for 2015 Service revenue S54,000 Expenses $46,000 4,500 200 9,700 Salaries Depreciation Amortization of copyrights Other expenses Net loss 60,400 $(6,400) Partial Balance Sheet Accounts receivable Salaries payable Other accrued liabilities 2015 $8,000 12,000 1,000 2014 S13,000 1,000 2,800