ACC - Rajesh Company Problem
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Presented below are the financial statements of Rajesh Company.
| Rajesh Company Comparative Balance Sheets December 31 | ||||||
| Assets | 2014 | 2013 | ||||
| Cash | $37,390 | $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 Company Income Statement For the Year Ended December 31, 2014 | ||
| Sales revenue | $242,840 | |
| Cost 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.
12 years ago
ACC - Rajesh Company Problem Solution
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