Using vertical analysis, prepare an income statement. (this is all the information given) (indirect method)

thats all info i have, it says indirect method on cash flow only

Robust Robots, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Assets Current Assets: Cash Accounts Receivable, net Merchandise Inventory Supplies Prepaid Insurance Total Current Assets $ $ $ $ $ $ 65,000 150,000 135,000 9,700 30,000 389,700 $ $ $ $ $ $ 80,000 100,000 70,000 500 10,000 260,500 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, plant, and Equipment Total Assets $ $ $ $ 500,000 (80,000) 420,000 809,700 $ $ $ $ 240,000 (90,000) 150,000 410,500 4 Page 2019 2018 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Unearned Revenue Salaries Payable Federal Income Taxes Payable Total Current Liabilities 150,000 40,000 40,000 10,000 240,000 $ $ $ $ 40,000 50,000 30,000 10,000 130,000 Long Term Liabilities Note Payable Total Long Term Liabilities Total Liabilities S . $ $ $ 130,000 130,000 370,000 $ 130,000 $ 100,000 Stockholders' Equity: Common Stock, $10 Par Paid In Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ $ $ $ $ 170,000 43,700 226,000 439,700 809,700 180,500 280,500 410,500 5 Page LLLLLLLLLEEEEESSSSSSSSSSSSSSS Comparative Income Statement SOCIETY Robust Robots, Inc. Comparative Statement of Income For the Years Ended December 31, 2019 and 2018 2019 2018 $ $ $ 700,000 524,300 175,700 $ $ $ 600,000 420,000 180,000 Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries and Wages Expense Rent Expense Depreciation Expense Total Operating Expenses Income from Operations Loss on Sale of Equipment Interest Expense Increase (Decrease) in Operating Income Income before Taxes Federal Income Taxes Net Income $ $ $ $ $ $ $ $ 47,290 20,256 20,000 87,546 88,154 (5,213) (3,656) (8,869) $ $ $ $ $ $ $ $ 100,000 20,000 10,000 130,000 50,000 (5,000) (5,000) $ $ $ 79,285 (23,786) 55,500 $ $ $ 45,000 (13,500) 31,500 6 Page Comparative Statement of Retained Earnings Robust Robots, Inc. Comparative Statement of Retained Earnings For the Years Ended December 31, 2019 and 2018 2019 2018 Retained Earnings, Beginning $ 180,500 $ 176,000 of Year Net Income $ 55,500 $ 31,500 Less: Dividends $ 10,000 $ 27,000 Retained Earnings, End of Year $ 226,000 $ 180,500 1. Equipment with a cost of $90,000 on which depreciation has been recorded, was sold for cash. Additional equipment was purchased for cash and a long-term note payable. 2. Stock was issued for cash. 3. The dividends were paid in cash. 71 Pa 6:46 Statement of Cash Flows (indirect Method) Cash flow from. Operating Activities Net Income Austments to reconcile net income Depreciation Expense Loss on sale of Equipment increase in Accounts Receivable increase in inventor increase in Supplies increase in Prepaid Insurance Increase in Accounts payable Decrease in Uneamed Revenue Increase in Salary payable Net Cash provided by Operating activities Cash flow from Investing Activities Purchase of Equipment Sale of Equipment Net Cash used in Investing Activities Cash flow from Financing Activities Cash dividends paid Proceeds from Issuance of Common Stock Net Cash provided by Financing Activities Net Increase in Cash Cash, Beginning Balance Cash, Ending Balance Note: Non cash Activities Purchase of equipment by issuing Notes payable Explanation: Equipment purchased for cash Cost of Equipment = Ending Balance in PPE a/c - Beg. Balance in PPE a/c + Cost of Equipment sold 500000 - 240000 + 90000 = 350000 Equipment purchased for cash - Cost of Equipment - Note payable Issued 350000 - 130000 = 220000 Sale Value of Equipment Accumulated Depreciation on Sold Machinery = Beg, bal in Acc. Depreciation + Depreciation expense - Ending bal in Acc. Depreciation 90000 + 20000 - 80000 = 30000 Book Value of Sold Equipment = Cost of sold equipment - Accumulated. Depreciation on equipment sold 90000 - 30000 = 60000 Sale Value of Equipment = Book Value of Equipment sold Loss on sale F60000 - 5213 = 54787