E Menu Statement of Cash Flows (Indirect Method) The Rainbow Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow RAINBOW COMPANY Income Statement For the Year Ended December 31, 2013 5900,000 18,000 918,000 Sales Revenue Dividend Income Cost of Goods Sold Wages and Other Operating Expenses Depreciation Expense Patent Amortization Expense Interest Expense Income Tax Expense Loss on Sale of Equipment Gain on Sale of Investments $528,000 156,000 46,800 8,400 15,600 52,800 (12,000) 801,600 Net Income $116,400 RAINBOW COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash and Cash Equivalents Accounts Receivable 22,800 $30,000 48,000 36,000