if you can make the chart/graph easy to read i'd appreciate it
Mary Walker, president of Rusco Company, 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 this year. Since 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 Huseo Company Comparative Balance Wheet at July 31 This Year La Year Asset Corrent assetni Cash 90,000 $ 21,000 Accounts receivable 120,000 80,000 Inventory 140,000 90,000 Prepaid expenses 5.000 9,000 Total current assets 22000 200,000 Long-tem Investments 50 000 70,000 Plant and equipment 430,000 300,000 Les moeumulated depreciation 60,000 $50.000 Set plant and equipment 370/000 2250,000 Total assets 5693,000 $520.000 Liabilities and stockholders' Equity Current liabilities Account payable $123,000 $60,000 Accrued liabilities 8,000 17,000 Income taxes payable 20.000 12.000 Total current liabilities 151,00 69,000 Bonds payable 20.000 0 Total Abilities 221.000 0.000 Stockholders equity Connon stock 366,000 346,000 Retained earnings 106,000 85,000 Total stockholders' equity 472.000 431.000 Total liabilities and stockholders' equity 5693,000 5520,000 Rusco Company Income Statement For This Year Ended July 31 Sales Coat of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating itemt Cain on sale of investments $10,000 Loss on sale of equipment (2.000) Income before taxes Income taxes Net Income $500,000 300,000 200.000 150 000 42,000 8,000 50,000 20.000 30,000 The following additional information is available for this year. a. The company declared and paid a cash dividend. b. Equipment was sold during the year for $8,000. The equipment originally cost $20,000 and had accumulated depreciation of $10,000 c Long-term investments that cost $20,000 were sold during the year for $30,000. d. The company did not retire any bonds payable or repurchase any of its common stock Because the Cash account decreased so dramatically during this year, the company's executive committee is anxious to see how the income statement would appear on a cash basis. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the data from (1) above, and other data from the problem as needed, prepare a statement of cash flows for this year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the direct method, adjust the company's Income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Rusco Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis D Adjustment to a cash basis: 0 Selling and administrative expenses Adjustments to a cash basis 0 Income taxes Adjustments to a cash basis $ 0 Required: Required 2 > Required 1 Required 2 Using the data from (1) above, and other data from the problem as needed, prepare a statement of cash flows for this year. (Cash outflows and amounts to be deducted should be indicated with a minus sign.) Rusco Company Statement of Cash Flow For This Year Ended July 31 Operating activities: Cash received from customers Less cash disbursements for CE 0 Total cash disbursements 0 Investing activities: 0 Financing activities 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0
