Presented below are the financial statements of Rajesh Company Ltd. RAJESH COMPANY LTD. Income Statement For the

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Presented below are the financial statements of Rajesh Company Ltd.
Presented below are the financial statements of Rajesh Company Ltd.
RAJESH

RAJESH COMPANY LTD.
Income Statement
For the Year Ended December 31, 2017
Sales revenue........................................£242,000
Cost of goods sold....................................175,000
Gross profit.............................................67,000
Operating expenses....................................24,000
Income from operations...............................43,000
Interest expense..........................................3,000
Income before income taxes..........................40,000
Income tax expense......................................8,000
Net income............................................£ 32,000
Additional data:
1. Depreciation expense is £13,300.
2. Dividends declared and paid were £20,000.
3. During the year, equipment was sold for £9,700 cash. This equipment cost £18,000 originally and had accumulated depreciation of £8,300 at the time of sale.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Compute free cash flow.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Financial Accounting

ISBN: 978-1118978085

IFRS 3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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