Refer to the information for Rosie-Lee Company below. Additional transactions were as follows: a….

Refer to the information for Rosie-Lee Company below. Additional transactions were as follows: a. Sold equipment costing $21,600 with accumulated depreciation of $16,200 for $3,600. b. Issued bonds for $90,000 on December 31. c. Paid cash dividends of $36,000. d. Retired mortgage of $108,000 on December 31. The following balance sheets and income statement were taken from the records of Rosie-Lee Company: Rosie-Lee Company Income Statement For the Year Ended June 30, 2016 Sales……………………………………………..$ 920,000 Less: Cost of goods sold………………………….(620,000) Gross margin……………………………………..$ 300,000 Less: Operating expenses…………………………(177,600) Net income……………………………………….$ 122,400 Required: 1. Prepare a schedule of operating cash flows using (a) the indirect method and (b) the direct method. 2. Prepare a statement of cash flows using the indirect method.

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