ch 13 assignment 2

Financial statement information for Rothlisberger Co for 2018 is as follows: Sales 335,000 Cost of Goods Sold 142,000 Gross Profit 193,000 Operating Expenses: Depreciation-Equipment 22,000 Depreciation-Building 20,000 Other 57,000 Total Operating Expenses 99,000 Operating Income 94,000 Other Expenses/Losses: Loss on Sale of Plant Assets 4,000 Interest Expense 15,000 (19,000) Income Before Taxes 75,000 Income Tax Expense 33,000 Net Income 42,000 2018 2017 Assets Cash 81,000 45,000 Accounts Receivable 41,000 62,000 Merchandise Inventory 151,450 142,000 Prepaid Insurance 15,280 21,000 Land 105,000 130,000 Equipment 221,000 155,000 Accum. Depreciation-Equipment (45,000) (35,000) Building 200,000 200,000 Accum. Depreciation-Building (60,000) (40,000) Total 709,730 680,000 Liabilities and Stockholders' Equity Accounts Payable 47,730 40,000 Bonds Payable 260,000 300,000 Common Stock, $1 par 200,000 160,000 Retained Earnings 202,000 180,000 Total 709,730 680,000 Additional Information: 1. Land costing $25,000 was sold for $25,000 cash. 2. Cash dividends of $20,000 were declared and paid during the year. 3. Equipment costing $88,000 was purchased for cash. 4. Equipment costing $22,000 (accumulated deprecation $12,000) was sold for $6,000 cash. 5. Bonds with a face value of $40,000 were converted into 40,000 shares of $1 par value common stock. Instructions: A. Complete a set of cash flow T-accounts using the indirect method of computing cash flow from operations. B. Prepare the formal cash flow statement.