On the following pages, so your solution to the following problems.

1. Analyze and record the above transactions.

2. Prepare the following financial statements: (i) Income Statement, (ii) Balance Sheet, and (iii) Statement of Cash Flows using both Direct and Indirect method.

Ricardo Pasta Company sells various types of pasta to grocery chains as private label brands. The trial balance for the company's fiscal year end December 31, 2013 is as follows: Information for year-end adjusting entries made on January 31 is as follows: a. Depreciation on equipment, $600. b. Interest accrued on notes payable (show calculation). c. Income tax expense, \$500, payable in June 2014