The following balance sheets and income statement were taken from the records of Rosie-Lee Company: Rosie-Lee Company
Question:
Rosie-Lee Company
Income Statement
For the Year Ended June 30, 2010
Sales ...........$ 920,000
Less: Cost of goods sold ..(620,000)
Gross margin .......$ 300,000
Less: Operating expenses ..(177,600)
Net income .......$ 122,400
Additional transactions were as follows:
a. Sold equipment costing $21,600 with accumulated depreciation of $16,200 for $3,600.
b. Retired a mortgage at a price of $108,000 on December 31.
c. Paid cash dividends of $36,000.
Required:
Prepare a statement of cash flows by using a worksheet similar to the one shown in Cornerstone15-8.
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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