student no. 299

The Statement of financial position account balances as at December 31, 2019 and 2018 and Income statement of Ravioli Inc. are presented below: Statement of Financial Position Account Balances December 31 2019 2018 Cash $58,XXX $18,000 Accounts receivable, net 40,000 32,XXX Inventory 42,500 38,200 67,000 88,000 (31,000) (35,000) Building and equipment Accumulated depreciation Accounts payable Salaries payable L-T Debt Payable $21,000 $18,500 3,800 25,000 0 Common shares 7,XXX 5,000 Retained earnings 119,700 110,700 Ravioli Inc. Income Statement For the Year Ended December 31, 2019 Sales $125,000 48,000 Cost of goods sold Gross profit Gain on Sale of equipment 77,000 7,000 Depreciation expenses 8,000 Salaries expenses 41,000 Other Operating Expenses 16,000 Operating income 19,000 Income taxes 6,000 Profit $13,000 Additional information: 1.) Equipment was purchased during the year for $10,000 cash. 2.) Another piece of equipment was sold during the year. It had accumulated depreciation of $ 12,000. The gain on sale of this equipment is recorded in Income statement. Hint: The first step is to calculate the cost of the equipment sold, using information in 1.) and Building and Equipment account balances. 3.) Dividends were declared and paid during the year. Prepare the statement of cash flows for 2019 using the indirect method. You MUST list all items in the same order as they appear on the Statement of Cash Flows in proper format. You do not have to insert the table to present your work