Preparing a Statement of Cash Flows (Indirect Method) Rainbow Company's income statement and comparative balance sheets follow. RAINBOW COMPANY Income Statement For Year Ended December 31, 2016 Sales $1,500,000 Dividend Income 30,000 Total Revenue 1,530,000 Cost of Goods Sold $880,000 Wages and Other Operating Expenses 260,000 Depreciation Expense 78,000 Patent Amortization Expense 14,000 Interest Expense 26,000 Income Tax Expense 88,000 Loss on Sale of Equipment 10,000 Gain on Sale of Investments (6,000) 1,350,000 Net Income $180,000 Preparing a Statement of Cash Flows (Indirect Method) Rainbow Company's income statement and comparative balance sheets follow. RAINBOW COMPANY Income Statement For Year Ended December 31, 2016 Sales $1,500,000 Dividend Income 30,000 Total Revenue 1,530,000 Cost of Goods Sold $880,000 Wages and Other Operating Expenses 260,000 Depreciation Expense 78,000 Patent Amortization Expense 14,000 Interest Expense 26,000 Income Tax Expense 88,000 Loss on Sale of Equipment 10,000 Gain on Sale of Investments (6,000) 1,350,000 Net Income $180,000