O coLLEGE SPRING 2019 1. Presented below are the financial statements of Rocastle company ROCASTLE COMPANY Comparative Balance Sheets December 31 Assets Cash 018 $18,000 Accounts receivable 2017 $33,000 25,000 Equipment Accumulated depreciation- Equipment Total 14,000 25,000 $78,000 27.000) 43.000 (24,000) 54,000 126,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $31,000 24,000 $43,000 20,000 20,000 10,000 25,000 25,000 28,000 $126,000 Total $131,000 RECASTLE COMPANY Income Statement For the Year ended December 31, 2018 $286,000 204,000 82,000 37,000 45,000 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense 38,000 Income before income taxes 10,000 Income tax expense Net income Additional data Depreciation expense was $6,000. Dividends of $25,000 were declared and paid 1. 3. During the year, equipment was sold for $12.000 cash. This equipment cost $15,000 Originally and had accumulated depreciation of $3,000 at the time of sale. 4. Additional equipment was purchased for $7,000 cash. 2. 25 points Instructions: Prepare a statement of cash flows using the indirect method. (a)