-/50 E Presented below are the financial statements of Skysong Ltd. Skysong Ltd. Comparative Statements of Financial Position December 31 Assets 2020 2019 Equipment 55,200 E71.760 Accumulated depreciation-equipment (26,680) 122,080) Inventory 27.600 18,400 Accounts receivable 30.360 12,880 Cash 34.040 18.400 Total 120.520 E99.360 Equity and Liabilities Share capital-ordinary 16,560 E12,880 Retained earnings 46,000 34.960 Equity and Liabilities E16,560 E12,880 46.000 Share capital-ordinary Retained earnings Bonds payable Accounts payable 34.960 24,840 30,360 26,680 13,800 Income taxes payable 6,440 7.360 Total 120,520 E99,360 Rajesh Ltd. Income Statement For the Year Ended December 31, 2020 Sales revenue 222.640 Cost of goods sold 161.000 Gross profit 61,640 Operating expenses 22.080 18 Rajesh Ltd. Income Statement For the Year Ended December 31, 2020 Sales revenue 222,640 Cost of goods sold 161.000 Gross profit 61.640 Operating expenses 22.080 Income from operations 39,560 Interest expense 2.760 Income before income taxes 36,800 Income tax expense 7,360 Net Income 29,440 Additional data: -/50 Additional data: 1. 2 Depreciation expense is 12.236. Dividends declared and paid were E 18.400 During the year, equipment was sold for 8.924 cash. This equipment cost 16,560 originally and had accumulated depreciation of 4,600 at the time of sale. 3. (a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - signes. -15,000 or in parenthesis eg. (15,000.) SKYSONG LTD. Statement of Cash Flows Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a signes -15.000 or in parenthesis eg. (15,000) SKYSONG LTD. Statement of Cash Flows E Adjustments to reconcile net income to 5 50 = Adjustments to reconcile net income to S + .. . --- E Attempts: 0 of 3 used Submit Answer Save for Later S