D E G Prepare the Statement of Cash Flows for Rich Corp using the INDIRECT method by completing the worksheet below. Prepare the Statement of Cash Flows for Rich Corp using the DIRECT method by completing the worksheet below. Be sure to indicate in which section of the statement each should be shown. Rich Corp Income Statement 2 FYE 12/31/20 13 14 Revenues 2,670,000 15 Cost of Goods Sold (1,395,000) 16 Operating Expenses (663,000) 17 Interest Expense (36,000) 1 Loss on sale of equipment (6,000) 2.100,000) 19 Income before Income taxes 570,000 20 Income tax expense 195,000) 21 Net Income 375,000 22 Additional Information relating to 2020 activities: Cash dividends of $165,000 were declared and paid 19 Equipment costing $123,000 and having a carrying value of 5108.000 was sold for 5102.000 cash 25 Equipment with a cost of $498,000 was purchased for cash 2 Operating expenses include depreciation expense of $99.000 and amortization of prepaid expenses of 56.000 Lund was sold at its book value for cash Interest of $36.900 was paid in cash Creath Tyto x fx B E INDIRECT METHOD Debits Cash Accounts Receivable Inventory Prepaid Insurance Land Buildings Equipment 5 12/31/2019 111,000 78,000 0 18,000 210,000 600,000 204,000 1,221,000 Credits 12/31/2020 162,000 204,000 162,000 12,000 135,000 600,000 579,000 1,854,000 6 7 Accumulated Depreciation, Accumulated Depreciation, 49 Accounts Payable 50 Bonds Payable 51 Common Stock ($1 par) 52 Retained Earnings 53 33,000 30,000 120,000 450,000 180,000 408,000 1.221,000 63,000 84,000 99,000 330,000 660,000 618,000 1,854,000 55 56 Cash Flow Section INDIRECT method: 57 5 Sheet1 Sheet Sheets Red Type here to search i 6 L D E Debits Credits 12/31/2020 162,000 204,000 162,000 12,000 135,000 600,000 579,000 1,854,000 A B 94 DIRECT METHOD 95 12/31/2019 96 Cash 111,000 97 Accounts Receivable 78,000 98 Inventory 0 99 Prepaid Insurance 18,000 100 Land 210,000 101 Buildings 600,000 102 Equipment 204,000 103 1,221,000 104 105 Accumulated Depreciation, 33,000 106 Accumulated Depreciation, 30,000 107 Accounts Payable 120,000 108 Bonds Payable 450,000 109 Common Stock ($1 par) 180,000 110 Retained Earnings 408,000 111 1,221,000 112 113 Income Statement Section 114 Revenues 115 Cost of Goods Sold 116 Operating Expenses 117 Interest Expense Locson sale nf sinment Sheet1 Sheet2 Sheet 63,000 84,000 99,000 330,000 660,000 618,000 1,854,000 Type here to search L