5 Required: 6 Prepare the Statement of Cash Flows for Rich Corp using the INDIRECT method by completing the worksheet below. Prepare the Statement of Cash Flows for RichCorp using the DIRECT method by completing the worksheet below. Be sure to indicate in which section of the statement each should be shown. 7 B 9 10 Rich Corp 11 Income Statement 12 YE 12/31/20 13 14 Revenues 2,670,000 15 Cost of Goods Sold (1,395,000) 16 Operating Expenses (663,000) 17 Interest Expense (36,000) 18 Loss on sale of equipment (6,000) (2,100,000) 19 Income before income taxes 570,000 20 Income tax expense (195,000) 21 Net Income 375,000 23 Additional Information relating to 2020 activities: 24 Cash dividends of $165,000 were declared and paid Equipment costing $123,000 and having a carrying value of $108,000, was sold for $102,000 cash 26 Equipment with a cost of $498,000 was purchased for cash 27 Operating expenses include depreciation expense of 599,000 and amortization of prepaid expenses of $6,000 Land was sold at its book value for cash Interest expense of $36,000 was paid in cash Common stock was issued for cash Inventory was purchased on credit Assume operating expenses are paid in cash 33 25 20 29 30 5 Required: 6 Prepare the Statement of Cash Flows for Rich Corp using the INDIRECT method by completing the worksheet below. Prepare the Statement of Cash Flows for RichCorp using the DIRECT method by completing the worksheet below. Be sure to indicate in which section of the statement each should be shown. 7 B 9 10 Rich Corp 11 Income Statement 12 YE 12/31/20 13 14 Revenues 2,670,000 15 Cost of Goods Sold (1,395,000) 16 Operating Expenses (663,000) 17 Interest Expense (36,000) 18 Loss on sale of equipment (6,000) (2,100,000) 19 Income before income taxes 570,000 20 Income tax expense (195,000) 21 Net Income 375,000 23 Additional Information relating to 2020 activities: 24 Cash dividends of $165,000 were declared and paid Equipment costing $123,000 and having a carrying value of $108,000, was sold for $102,000 cash 26 Equipment with a cost of $498,000 was purchased for cash 27 Operating expenses include depreciation expense of 599,000 and amortization of prepaid expenses of $6,000 Land was sold at its book value for cash Interest expense of $36,000 was paid in cash Common stock was issued for cash Inventory was purchased on credit Assume operating expenses are paid in cash 33 25 20 29 30