Income before income taxes 38,000 10,000 Income tax expense $ 28,000 Net income Additional data: 1. Dividends of $23,000 were declared and paid. 2. During the year equipment was sold for $10,000 cash. This equipment cost $15,000 originally and had a book value of $10,000 at the time of sale. 3. All depreciation expense, $8,000, is in the operating expenses. 5. Additional equipment was purchased for $7,000 cash. Instructions (a) Prepare a statement of cash flows using the indirect method. Presented below are the financial statm Anbem 2. Comparative Balance Sheets December 31 ROCASTLE COMPANY 2019 $ 24,000 2018 $ 33,000 14,000 25,000 Asets Cash Accounts receivable Inventory Equipment Less Accumulated depreciation- equipment Total 25,000 41,000 $ 78,000 54,000 $126,000 $ 70,000 43,000 (24,000) (27,000) $133,000 Liabilities and Stockbolders Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $31,000 24,000 20,000 25,000 33,000 $133,000 $ 43,000 20,000 10,000 25,000 28,000 $126,000 Total ROCASTLE COMPANY Income Statement For the Year Ended December 31, 2019 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense $286,000 204,000 82,000 37,000 45,000 Income before income taxes Income tax expense 7,000 38,000 10,000 $ 28,000 Net income Additional data; 1. Dividends of $23,000 were declared and paid. 2. During the year equipment was sold for $10,000 cash. This equipment cost $15,000 originally and had a book value of $10,000 at the time of sale. 3. All depreciation expense, $8,000, is in the operating expenses. 5. Additional equipment was purchased for $7,000 cash. Instructions