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Check Mary Walker, president of Rusco Company, considers $48,000 to be the minimum cash balance for operating purposes. income for the year, and also issued both bonds and common stock, the sharp decline from the following statements, only $43,000 in cash was available at the end of this year Since the company reported a large net in cash is puzzling to Ms. Walker. Comparative Balance Sheet at July 31 Assets Current assetsr Cash and cash equivalents $43,000$ 66,600 246,400 212,800 26,60048,600 574,400 Accounts receivable 233,600 Inventory Prepaid expenses Total current assets Long-term investments Plant and equipment 275,200 578,400 916,000 692,000 778,000 198,400 Less accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders Equity $1,444,400$1,414.000 Current liabilitiest 200,200 10,800 $ 200,200 260,800 20,600 53,000 334,400 284,000136,000 Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: 559.400 760,500 740,000 Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 885,000943.600 $1.444,400 1,414,000 Rusco Conpany For This Year Ended July 31 Sales 850,000 Homework Help Income Statement uly 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items : $1,360,000 850,000 510,000 363,800 146,200 Gain on sale of investments 34,000 Loss on sale of equipment (11,60022,400 Income before taxes 168,600 50,440 $ 118,160 ncome taxes Net income 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 $66,400. The equipment originally cost $146,000 and had accumulated depreciation of $68,000. Long-term investments that cost $86,000 were sold during the year for $120,000. 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 () above, and other data from the problem as needed, prepare a statement of cash flows for this year Complete this question by entering your answers in the tabs below