Preparing a Statement of Cash Flows (Direct Method) Rainbow Company's income statement and comparative ba RAINBOW COMPANY Income Statement For Year Ended December 31, 2016 $1,125,000 22,500 1,147,500 Sales Dividend Income Total Revenue Cost of Goods Sold Wages and Other Operating Expenses Depreciation Expense Patent Amortizeton Expense nterest-Expense income Tax Expense $660,000 195,000 s8 500 o.so0 Loss on Sale of ecuprment Gain on Sale of investments