Complete Direct method,complete operating activities section using both methods and investing & financing section

Mary Walker, president of Rusco Products, considers $ 14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at the end of 2009. Bccause 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 Products Comparative Balance Sheet July 31, 2009 and 2008 2009 2008 Assets Current assets: Cash .. $8000 $21000 Accounts receivable... 120.000 80,000 Inventory.. 1,40,000 90,000 Prepaid expenses.. 5,000 9,000 Total current assets. 2,73,000 2,00,000 Long-term investments ... 50,000 70,000 4 30 000 3 00 000 Plant and equipment Less accumulated depreciation .. 60,000 50,000 Net plant and equipment ... 3,70,000 2,50,000 $693000 $520000 Total assets... Liabilities and Stockholders' Equity Current liabilities: Accounts payable... $123000 $60000 8,000 Accrued liabilities... 17,000 Total current liabilities ... 1,31,000 77.000 Bonds payable ... 70,000 Deferred income taxes... 20,000 12,000 Total liabilities... 89,000 2,21,000 Stockholders' equity: Preferred stock ... 96,000 80,000 2,86,000 2,50,000 Common stock... Common stock.. 2,86,000 2,50,000 Retained earnings.. 1,06,000 85,000 Total stockholders' equity 4,72,000 4,31,000 Total liabilities and stockholders' equity... $693000 $520000 Rusco Products Income Statement For the Year Ended July 31, 2009 $5,00,000 Sales.. Cost of goods sold . 3,00,000 Gross margin .. 2,00,000 Selling and administrative expenses... 1,58,000 Net operating income .. 42,000 Nonoperating items: Gain on sale of investments. $10,000 Loss on sale of equipment... 2,000 8,000 Income before taxes. 50,000 Income taxes.. 20,000 $30,000 Net income.. Mary Walker, president of Rusco Products, considers $ 14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at the end of 2009. Bccause 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 Products Comparative Balance Sheet July 31, 2009 and 2008 2009 2008 Assets Current assets: Cash .. $8000 $21000 Accounts receivable... 120.000 80,000 Inventory.. 1,40,000 90,000 Prepaid expenses.. 5,000 9,000 Total current assets. 2,73,000 2,00,000 Long-term investments ... 50,000 70,000 4 30 000 3 00 000 Plant and equipment Less accumulated depreciation .. 60,000 50,000 Net plant and equipment ... 3,70,000 2,50,000 $693000 $520000 Total assets... Liabilities and Stockholders' Equity Current liabilities: Accounts payable... $123000 $60000 8,000 Accrued liabilities... 17,000 Total current liabilities ... 1,31,000 77.000 Bonds payable ... 70,000 Deferred income taxes... 20,000 12,000 Total liabilities... 89,000 2,21,000 Stockholders' equity: Preferred stock ... 96,000 80,000 2,86,000 2,50,000 Common stock... Common stock.. 2,86,000 2,50,000 Retained earnings.. 1,06,000 85,000 Total stockholders' equity 4,72,000 4,31,000 Total liabilities and stockholders' equity... $693000 $520000 Rusco Products Income Statement For the Year Ended July 31, 2009 $5,00,000 Sales.. Cost of goods sold . 3,00,000 Gross margin .. 2,00,000 Selling and administrative expenses... 1,58,000 Net operating income .. 42,000 Nonoperating items: Gain on sale of investments. $10,000 Loss on sale of equipment... 2,000 8,000 Income before taxes. 50,000 Income taxes.. 20,000 $30,000 Net income