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The following represents the financial statements for Randall Company at the end of December 31, 2015. Randall Company Comparative Statement of Financial Position As of

The following represents the financial statements for Randall Company at the end of December 31, 2015.

Randall Company

Comparative Statement of Financial Position

As of December 31, 2015

12/31/2015

12/31/2014

Equipment

154 000

130 000

Accumulated depre - equipment

(35 000)

(25 000)

Copyrights

46 000

50 000

Inventory

40 000

60 000

Prepaid rent

5 000

4 000

Accounts Receivable

62 000

49 000

Short term Investments - trading

35 000

18 000

Cash

6 000

9 000

Total assets

313 000

295 000

Share Capital ordinary $10 par

100 000

100 000

Share Premium - ordinary

30 000

30 000

Retained Earnings

57 000

36 000

Long term loans payable

60 000

67 000

Accounts Payable

46 000

42 000

Income taxes payable

4 000

6 000

Salaries and Wages payable

8 000

4 000

Short term loans payable

8 000

10 000

Total equity and liabilities

313 000

295 000

Randall Company

Income Statement

For the year ended December 31, 2015

Sales Revenue

338 150

Cost of Goods sold

175 000

Gross Margin

163150

Operating Expense

120 000

Operating Income

43 150

Interest Expense

11 400

Gain on sale of equipment

2 000

9 400

Income before tax

33 750

Income tax expense

6 750

Net Income

27 000

Additional Information:

  1. Dividends in the amount of $6 000 were declared and paid during 2015.
  2. Depreciation expense and amortization expense are included in operating expenses.
  3. No unrealized gains or losses have occurred on the investments during the year.
  4. Equipment that had a cost of $30,000 and 70% depreciated was sold during 2015.

Instructions

Prepare a statement of cash flows using the Indirect Method.

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