The 2023 and 2022 balance sheets of Rabb Corporation follow. The 2023 income statement is also provided. Rabb had no noncash investing and financing transactions during 2023. During the year, the company sold equipment for $15,100, which had originally cost $13,500 and had a book value of $10,500. The company did not issue any notes payable during the year but did issue common stock for $31,000. The company purchased plant assets and long-term investments with cash.

Requirements1. Prepare the statement of cash flows for Rabb Corporation for 2023 using the indirect method.2. Evaluate the company’s cash flows for the year. Discuss each of the categories of cash flows in your response.

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1 2 3 4 5 Sales revenues 6 Less: Cost of goods sold 7 Gross profit 8 9 10 11 Less operating expenses: Rabb Corporation Income Statement For the Year Ended December 31, 2023 Salaries and wages expense Depreciation expense Other operating expenses Total operating expenses 12 13 Operating income 14 Plus other income and less other expenses: 15 Interest expense Gain on sale of PP&E Total other income and expenses Income before income taxes 16 17 18 19 Less: Income tax expense 20 Net income 21 $ $ B 24,500 5,900 13,000 9,900 4,600 $ $ $ S S $ C 347,000 76,000 271,000 43,400 227,600 5,300 222,300 37,000 185,300