8 8 points) Skipped Problem 13A-5 (Algo) Prepare and Interpret a Statement of Cash Flows [LO13-1, LO13-4] Mary Walker, president of Rusco Company, considers $28,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $23,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Rusco Company Comparative Balance Sheet at July 31 Assets Current assets: aBook Cash Accounts receivable Inventory Prin References Prepaid expenses Total current assets i Long-term investments Plant and equipment Less accumulated depreciation tiet plant and equipment Total assets Liabilities and Stockholders' Equity Current Liabilities: This Year Last Year # 23,000 209,400 $ 42,600 220,400 257,200 12,600 200.000 24,600 502,400 488,400 114,000 160,000 076,000 758,000 214,000 192,400 663,000 565,600 $1,278,400 1,214,000 $182,200 8,800 48,400 $230,000 16,500 43,000 239,400 290,400 224,000 116,000 463,400 414,400 665,100 640,000 149,900 159,600 15,000 799,400 $1,278,400 1,214,000 Accounts payable Accrued liabilities Income taxes payable. Bonds payable eurrent liabilities Total e Total liabilities Stockholders equity Common stock Betained earnings Total stockholders' equity Total liabilities and stockholders' equity Rus Company Incies Statement For Thia Twar Ended July 31 . Check my wo 8 8 00 points Skyped Sales Cost of goods sold Gross margin Rusco Company Income Statement For This Year Ended July 31 Selling and administrative expenses Het operating income Monoperating it Cain on sale of investments Loss on sale of equipment Income before taxes Income taxes $960,000 600,000 360,000 256,800 103,200 24,000 (7,600) 16,400 119,600 35,840 83,760 Set income Bock Prim 10 t References The following additional information is available for this year. a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $50,400, The equipment originally cost $106,000 and had accumulated depreciation of $48,000 c. Long-term investments that cost $46,000 were sold during the year for $70,000. d. The company did not retire any bonds payable or repurchase any of its common stock Because the Cash account decreased so dramatically during this year, the company's executive committee is anxious to see how the Income statement would appear on a cash basis. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis 2. Using the data from (0) above, and other data from the problem as needed, prepare a statement of cash flows for this year Complete this question by entering your answers in the tabs below. Required 1 Check my work 8 points Sloped ebook Pri Required 1 Required 2 Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Rusco Company Direct Method of Detennining the Net Cash flows from Operating activities Adjustments to a cash basis References Adjustments to a cash basis Seling and administrative expenses Adjustments to a cash basis Income taxes Adjustments to a cash basis Next Check my work 00 8 8 points Skipped Operating activities Cash received from customers Less cash disbursements for Rusco Company Statement of Cash Flows For This Year Ended July 31 allock 10 j Total cash datursements Investing activities Financing activities Beginning cash and cash equivalents Ending cash and cash equivalents 0 0 Check my work