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Rusco Company Income Statement For This Year Ended July 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating
Rusco Company Income Statement For This Year Ended July 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $980,000 612,500 367,500 262,150 105,350 Gain on sale of investments $24,500 7,800 16,700 Loss on sale of equipment Income before taxes Income taxes Net income 122,050 36,570 $ 85,480 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 $51,200. The equipment originally cost $108,000 and had accumulated depreciation of $49,000 c. Long-term investments that cost $48,000 were sold during the year for $72,500 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
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