Prepare the Statement of Cash Flows for Rich Corp using the Direct method. 3,560,000 Rich Corp 1 Income Statement 2 FYE 12/31/20 3 Revenues Cost of Goods Sold Operating Expenses Interest Expense 3 Loss on sale of equipment Income before income taxes Income tax expense Net Income (1,860,000) (884,000) (48,000) (8,000) (2,800,000) 760,000 (260,000) 500,000 Additional Information relating to 2020 activities: Cash dividends of $220,000 were declared and paid Equipment costing $164,000 and having a carrying value of $144,000, was sold for $136,000 cash Equipment with a cost of $664,000 was purchased for cash Operating expenses include depreciation expense of $132,000 and amortization of prepaid expenses of $8,000 Land was sold at its book value for cash Interest expense of $48,000 was paid in cash Common stock was issued for cash Inventory was purchased on credit Assume operating expenses are paid in cash 3 Prepare the Statement of Cash Flows for Rich Corp using the Direct method. 3,560,000 Rich Corp 1 Income Statement 2 FYE 12/31/20 3 Revenues Cost of Goods Sold Operating Expenses Interest Expense 3 Loss on sale of equipment Income before income taxes Income tax expense Net Income (1,860,000) (884,000) (48,000) (8,000) (2,800,000) 760,000 (260,000) 500,000 Additional Information relating to 2020 activities: Cash dividends of $220,000 were declared and paid Equipment costing $164,000 and having a carrying value of $144,000, was sold for $136,000 cash Equipment with a cost of $664,000 was purchased for cash Operating expenses include depreciation expense of $132,000 and amortization of prepaid expenses of $8,000 Land was sold at its book value for cash Interest expense of $48,000 was paid in cash Common stock was issued for cash Inventory was purchased on credit Assume operating expenses are paid in cash 3