Please answer questions 1 & 2 for E12-8, show all work.

the indirect method. U IUI I VUIL TILM Company using E12-8 LO12-2 Reporting and Interpreting Cash Flows from Operating Activities from an Analyst's Perspective (Indirect Method) 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 Expenses Salaries Depreciation Amortization of copyrights Other expenses $46,000 4,500 200 9,700 60,400 $ (6,400) Net loss (Continued) CHAPTER 12 Statement of Ca Partial Balance Sheet Accounts receivable Salaries payable Other accrued liabilities Current Year $ 8,000 12,000 1,000 Prior Year $13,000 1,000 2,800 In addition, Rodriguez bought a small service machine for $5,000. 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? Explain why the reasons for the difference between cash flow from operations and net income are important to financial analysts. on from an Analyst's F42.9