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Presented below are the financial statements of Rajesh Company.;Rajesh Company;Comparative Balance Sheets;December 31;Assets;2014;2013Cash;$37,000;$20,000 Accounts receivable;33,000;14,000 Inventory;30,000;20,000 Equipment;60,000;78,000 A

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Presented below are the financial statements of Rajesh Company.;Rajesh Company;Comparative Balance Sheets;December 31;Assets 2014 2013;Cash $37,000 $20,000;Accounts receivable 33,000 14,000;Inventory 30,000 20,000;Equipment 60,000 78,000;Accumulated depreciation?equipment (29,000 ) (24,000 );Total $131,000 $108,000;Liabilities and Stockholders? Equity;Accounts payable $29,000 $ 15,000;Income taxes payable 7,000 8,000;Bonds payable 27,000 33,000;Common stock 18,000 14,000;Retained earnings 50,000 38,000;Total $131,000 $108,000;Rajesh Company;Income Statement;For the Year Ended December 31, 2014;Sales revenue $242,000;Cost of goods sold 175,000;Gross profit 67,000;Operating expenses 24,000;Income from operations 43,000;Interest expense 3,000;Income before income taxes 40,000;Income tax expense 8,000;Net income $32,000;Additional data;1. Depreciation expense is 13,300.;2. Dividends declared and paid were $20,000.;3. During the year equipment was sold for $9,700 cash. This equipment cost $18,000 originally and had accumulated depreciation of $8,300 at the time of sale.;(a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).);RAJESH COMPANY;Statement of Cash Flows;For the Year Ended December 31, 2014;$;Adjustments to reconcile net income to;$

 

Paper#74607 | Written in 18-Jul-2015

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