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ACC - Rajesh Company Problem

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Question;Presented below are the financial statements of Rajesh Company.;Rajesh CompanyComparative Balance SheetsDecember 31;Assets;2014;2013;Cash;$37,390;$19,470;Accounts receivable;32,220;19,490;Inventory;29,940;20,610;Equipment;59,580;77,930;Accumulated depreciation?equipment;(29,760);(23,270);Total;$129,740;$114,230;Liabilities and Stockholders? Equity;Accounts payable;$28,930;$16,610;Income taxes payable;7,050;8,250;Bonds payable;27,410;32,660;Common stock;17,450;13,400;Retained earnings;48,900;43,310;Total;$129,740;$114,230;Rajesh CompanyIncome StatementFor the Year Ended December 31, 2014;Sales revenue;$242,840Cost of goods sold;176,320;Gross profit;66,520;Operating expenses;23,240;Income from operations;43,280;Interest expense;2,900;Income before income taxes;40,380;Income tax expense;8,180;Net income;$32,200;Additional data:1.;Depreciation expense is 15,060.2.;Dividends declared and paid were $26,610.3.;During the year equipment was sold for $9,780cash. This equipment cost $18,350 originally and had accumulated depreciation of $8,570 at the time of sale.(a) Prepare a statement of cash flows using the indirect method.

 

Paper#44116 | Written in 18-Jul-2015

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