USING THE INDIRECT METHOD FOR THE CASH FLOW STATEMENT PREPARE A CASH FLOW FOR THE FOLLOWING:

The following represents the financial statements for Randall Company at the end of December 31, 2015.

Randall Company

Comparative Statement of Financial Position

As of December 31, 2015

	12/31/2015	12/31/2014
Equipment	154 000	130 000
Accumulated depre - equipment	(35 000)	(25 000)
Copyrights	46 000	50 000
Inventory	40 000	60 000
Prepaid rent	5 000	4 000
Accounts Receivable	62 000	49 000
Short term Investments - trading	35 000	18 000
Cash	6 000	9 000
Total assets	313 000	295 000
Share Capital ordinary $10 par	100 000	100 000
Share Premium - ordinary	30 000	30 000
Retained Earnings	57 000	36 000
Long term loans payable	60 000	67 000
Accounts Payable	46 000	42 000
Income taxes payable	4 000	6 000
Salaries and Wages payable	8 000	4 000
Short term loans payable	8 000	10 000
Total equity and liabilities	313 000	295 000

Randall Company

Income Statement

For the year ended December 31, 2015

Sales Revenue		338 150
Cost of Goods sold		175 000
Gross Margin		163150
Operating Expense		120 000
Operating Income		43 150
Interest Expense	11 400
Gain on sale of equipment	2 000	9 400
Income before tax		33 750
Income tax expense		6 750
Net Income		27 000

Additional Information:

1. Dividends in the amount of $6 000 were declared and paid during 2015.
2. Depreciation expense and amortization expense are included in operating expenses.
3. No unrealized gains or losses have occurred on the investments during the year.
4. Equipment that had a cost of $30,000 and 70% depreciated was sold during 2015.

Instructions

Prepare a statement of cash flows