Rusco Company Income statement For This Year Ended July 11 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items! Gain on sale of investments $23,000 Loss on sale of equipment (200) Income before taxes Income taxes Net income $920,000 575,000 345,000 246, 100 98,900 15,800 114,700 14,380 $ 80,320 The following additional information is available for this year a. The company declared and paid a cash dividend b. Equipment was sold during the year for $40,000. The equipment originally cost $102,000 and had accumulated depreciation of $46,000 c. Long-term investments that cost $42.000 were sold during the year for $65,000 d. The company did not retire any bonds payable or repurchase any of its common stock Because the Cash account decreased so dramatically during this year, the company's executive committee is anxious to see how the income statement would appear on a cash basis Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the data from (1) above, and other data from the problem as needed, prepare a statement of cash flows for this year. Required 1 Required 2 Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Rusco Company Direct Method of Determining the Net Cash Flows from Operating Activities Adjustments to a cash basis: Adjustments to a cash basis: Y Selling and administrative expenses Adjustments to a cash basis Income taxes Adjustments to a cash basis: Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the data from (1) above, and other data from the problem as needed, prepare a statement of cash flows for this year. (Cash outflows and amounts to be deducted should be indicated with a minus sign.) Rusco Company Statement of Cash Flows For This Year Ended July 31 Operating activities: Cash received from customers Less cash disbursements for Total cash disbursements Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents