Chapter 4 - Problem 1 (40 points) Information related to Batavia Furniture Company for the year ended December 31, 2012, follows. Cost of Goods Sold $ 10,000 Interest expense 5,000 Loss on discontinued operations (before income tax) 12,000 Administrative expenses 8,000 Dividend revenue 9,000 Loss on sales of long-term asset 11,000 Sales discount 1,000 Unrealized gain on non-trading securities (net of tax) 116,000 Sales revenue 131,000 Selling Expense 7,000 Required: 1. Prepare in good form a multiple-step income statement for the year 2012. Assume a 10% tax rate. (30 points) 2. Prepare in good form a statement of comprehensive income using a combined format for the year 2012. Assume a 10% tax rate. (10 points) Chapter 5. Problem 3 (30 points) The balance sheet for December 31, 2012, December 31, 2011, and the income statement for the year ended December 31, 2012, for Rocket Company follows Rocker Company Balance Sheet December 31, 2012 and 2011 2017 2011 Ats Cash Accounts receivable et Inventory Land Building and equipment Accumulated depresion Totale 25,000 60,000 20,000 50,000 130,000 LES FRA $20,000 70,000 100,000 50,000 115,000 (20.000 Libilities and Sockhaldurity Accounts payable Income taxes payable Wages payable Current not payable Common wock Retained ning 500.000 4.000 5,000 50,000 120.000 . SERE $ 35.000 3.000 3.000 60,000 100,000 STARD Additional information During 2012 cash payment for building and equipment $15.000 ** During 2012 cal paid for rement of notes payable $10.000 During 2012 cash received from ince of stock Note: Cash dividends of $68.000 were paid during 2013 $500,000 Rocket Company Income Statement For the Year Ended December 31, 2012 Sales Les exp Cost of goods sold $330.000 Selling and administrative expenses 90.000 includes depreciation of $15,000) rest expense 5. Total expre Income before taxes Income tax experts Net income 25000 25000 10DAD SHO Required: Prepare the statement of cash flows for 2012. (Present cash flows from operations using the indirect approach.)