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Required: Prepare the Statement of Cash Flows for Rich Corp using the INDIRECT method by completing the worksheet b Prepare the Statement of Cash Flows

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Required: Prepare the Statement of Cash Flows for Rich Corp using the INDIRECT method by completing the worksheet b Prepare the Statement of Cash Flows for Rich Corp using the DIRECT method by completing the worksheet bela Be sure to indicate in which section of the statement each should be shown. Rich Corp Income Statement EYE 12/31/20 2,670,000 Revenues Cost of Goods Sold Operating Expenses Interest Expense Loss on sale of equipment Income before income taxes Income tax expense Net Income (1,395,000) (663,000) (36,000) (6,000) (2,100,000) 570,000 (195,000) 375,000 Additional Information relating to 2020 activities: Cash dividends of $165,000 were declared and paid Equipment costing $123,000 and having a carrying value of $108,000, was sold for $102,000 cash Equipment with a cost of $498,000 was purchased for cash Operating expenses include depreciation expense of $99,000 and amortization of prepaid expenses of $6,000 Land was sold at its book value for cash Interest expense of $36,000 was paid in cash Common stock was issued for cash 1 Inventory was purchased on credit Assume operating expenses are paid in cash 2 3 Required: Prepare the Statement of Cash Flows for Rich Corp using the INDIRECT method by completing the worksheet b Prepare the Statement of Cash Flows for Rich Corp using the DIRECT method by completing the worksheet bela Be sure to indicate in which section of the statement each should be shown. Rich Corp Income Statement EYE 12/31/20 2,670,000 Revenues Cost of Goods Sold Operating Expenses Interest Expense Loss on sale of equipment Income before income taxes Income tax expense Net Income (1,395,000) (663,000) (36,000) (6,000) (2,100,000) 570,000 (195,000) 375,000 Additional Information relating to 2020 activities: Cash dividends of $165,000 were declared and paid Equipment costing $123,000 and having a carrying value of $108,000, was sold for $102,000 cash Equipment with a cost of $498,000 was purchased for cash Operating expenses include depreciation expense of $99,000 and amortization of prepaid expenses of $6,000 Land was sold at its book value for cash Interest expense of $36,000 was paid in cash Common stock was issued for cash 1 Inventory was purchased on credit Assume operating expenses are paid in cash 2 3

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