Presented below are the financial statements of Rajesh Company. RAJESH COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 2012 2011 $ 35.0X0 $ 20.000 33.0XXX 14.000 27,000 20.000 60,000 78,000 (29.(XX) (24.000) $126.000 $108.000 $ 29.000 $ 15.000 7.0XX) 8.000 27.000 33.(XX) 18,000 14.000 45.000 38.000 $126.(XXO $108.000 RAJESH COMPANY Income Statement For the Year Ended December 31, 2012 Sales revenue $242.000 Cost of goods sold 175.(XX) Gross profit 67.000 Operating expenses 24.000 Income from operations 43.000 Interest expense 3.000 Income before income taxes 40.000 Income tax expense 8.000 Net income $ 32.000 Additional data: 1. Dividends declared and paid were $25.000. 2. During the year equipment was sold for $8.500 cash. This equipment cost $18.000 originally and had a book value of $8.500 at the time of sale. 3. All depreciation expense. S14.500. is in the operating expenses. 4. All sales and purchases are on account. instructions as Prepare a statement of cash flows using the indirect method. Assets Cash Accounts receivable Inventory Prepaid expenses Investments Plant assets Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total 2012 2011 $ 90.800 $48,400 92.800 33. 112.500 1112.850 28,400 26.XXX) 138.000 114,000 270,0XX) 242.500 (50,000) (52.1XX01 8682.500 $514.750 $112.(XX) $67.31K) 16.50X) 17.000 110.XX) 150,000 220,000 175,0(N) 224.000 105.450 $682.500 5514.750 SINJH INC. Income Statement For the Year Ended December 31, 2012 Sales $392.780 Less: Cost of goods sold $135.460 Operating expenses. excluding depreciation 12.410 Depreciation expense 46.500 Income taxes 27.280 Interest expense 4.730 Loss on sale of plant assets 7.500 233.880 Net income $158,900 Additional information: 1. New plant assets costing $5.00 were purchased for cash during the year. 2. Old plant assets having an original cost of $57.500 were sold for $1.500 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $40.350 was declared and paid during the year. Instructions Prepare a statement of cash flows using the indirect method. P1710A Data for Sinjh Inc. are presented in P17-9A. Further analysis reveals that acce payable pertain to merchandise creditors. Instructions Prepare a statement of cash flows for Sinjh Inc. using the direct method.