Sales Less expenses: Rocket Company Income Statement For the Year Ended December 31, 2012 Cost of goods sold Selling and administrative expenses (includes depreciation of $60,000) Interest expense Total expenses Income before taxes Income tax expense Net income $1,320,000 360,000 20,000 Note: Cash dividends of $272,000 were paid during 2012. Required: a. Prepare the statement of cash flows for 2012. b. calculate 2012 ending cash balance. $2,000,000 1,700,000 $ 300,000 120,000 $ 180,000