H40 A B a D E F G H 35 36 INDIRECT METHOD Debits 31/12/2019 111.000 78.000 0 37 38 Cash 39 Accounts Receivable 40 Inventory 41 Prepaid Insurance 42 Land 43 Buildings 44 Equipment 45 18.000 210.000 600.000 204.000 1.221.000 Credits 31/12/2020 162.000 204.000 162.000 12.000 135.000 600.000 579.000 1.854.000 46 47 Accu lated Depreciation, 48 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 54 55 56 Cash Flow Section INDIRECT method: Sheet1 Sheet2 Sheet (+ Listo O Escribe aqu para buscar O x H40 c B D E G H 17 Interest Expense (36.000) 18 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 23 Additional Information relating to 2020 activities: 24 Cash dividends of $165,000 were declared and paid 25 Equipment costing $123,000 and having a carrying value of $108,000, was sold for $102,000 cash 26 Equipment with a cost of $498,000 was purchased for cash 27 Operating expenses include depreciation expense of $99,000 and amortization of prepaid expenses of $6,000 28 Land was sold at its book value for cash 29 Interest expense of $36,000 was paid in cash 30 Common stock was issued for cash 31 Inventory was purchased on credit 32 Assume operating expenses are paid in cash 33 34 35 36 INDIRECT METHOD 37 Debits 38 Cash 31/12/2019 111.000 Credits 31/12/2020 162.000 Sheet1 Sheet2 Sheets th Listo O Escribe aqu para buscar below. Prepare the Statement of Cash Flows for RichCorp using the DIRECT method by completing the worksheet below. sure to indicate in which section of the statement each should be shown. Rich Corp Income Statement EYE 12/31/20 evenues ost of Goods Sold Derating Expenses terest Expense ss on sale of equipment come before income taxes 2.670.000 (1.395.000) (663.000) (36.000) (6.000) (2.100.000) 570.000 (195.000) 375.000 come tax expense et Income Editional Information relating to 2020 activities: Cash dividends of $165,000 were declared and paid Equipment costing $123,000 and having a carrying value of $108,000, was sold for $102,000 cash Equipment with a cost of $498,000 was purchased for cash Sperating expenses include depreciation expense of $99,000 and amortization of prepaid expenses of $6,000 Sheet1 Sheet2 Sheet3 O Escribe aqu para buscar