Information from 12-8:

Please answer question 1&2 from problem E12-22, show all work.

the direct method. E12-22 (Chapter Supplement A) Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Direct Method) Refer to the information for Rodriguez Company in Exercise 12-8. Required: 1. Present the operating activities section of the statement of cash flows for Rodriguez Company using the direct method. Assume that other accrued liabilities relate to other expenses on the income statement. 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 financial analysts? Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following information: Income Statement for Current Year $54,000 Service revenue as Expenses Salaries Depreciation Amortization of copyrights Other expenses $46,000 4,500 200 9,700 60,400 $ (6,400) Net loss (Continued) Partial Balance Sheet Current Year Prior Year Accounts receivable Salaries payable Other accrued liabilities $ 8,000 12,000 1,000 $13,000 1,000 2,800 In addition, Rodriguez bought a small service machine for $5,000. Required