MW Comparative Balance Sheets As of Ileaemlmnl 20 16 20 1 5 Cash $122,300 my Accounts receivable, net 287,200 269,700 Inventory 12 5,000 95,000 Total current assets 534,500 445,200 Property, plant, & equipment 297,000 160,000 Accumulated depreciation 90,000 60,000 Net property, plant, & equipment 207,000 100,000 Total Assets 1.9174 1,500 $545,200 Accounts payable $150,000 $175,000 Taxes payable 17,600 20,000 Mortgage payable 110,000 g Total liabilities 277,600 195,000 Common stock 350,000 290,000 Retained earnings 113,900 60,200 Total stockholders' equity 463,900 350,200 Total liabilities & stockholders' 741,500 545,200 equity Required: Using the indirect method, prepare Rodney Enterprises1 statement of cash ows for 2016. Question Four: (20 marks) John Murphy, Rodney Enterprises' controller, is preparing the nancial statements for 2016. He has completed the comparative balance sheets and income statement, which follow, and has gathered this additional information: o On December 31, 2016, Rodney sold a piece of equipment with an original cost of $25,000 for $10,000 cash. The equipment had a book value of $13,000. 0 On February 1, 2016, Rodney issued $60,000 of common stock to raise cash in anticipation of the purchase of a new building later in the year. 0 On February 2, 2016, Rodney took out a ten-year $110,000 long-term loan to provide the remaining funds needed to purchase the building. 0 On May 15, 2016, Rodney paid $162,000 for the new building. 0 The company paid a cash dividend of $9,500. Rodney Enterprises Income Statement For the Year Ended December 31, 2016 Sales revenue $1,070,000 Loss on equipment sale [3,0001 Total revenue 1,067,000 Cost of goods sold 700,000 Operating expenses Depreciation expense 3 42,000 Interest expense 7,400 Wages expenses 175,000 Other expenses 16 000 240 400 Income before taxes 126,600 Tax expense 63 400 Net income $ 63,200