Presented below are the financial statements of Rajesh Company.
Comparative Balance Sheets
|Liabilities and Stockholdersâ€™ Equity|
|Income taxes payable||7,050||8,250|
For the Year Ended December 31, 2014
|Cost of goods sold||176,320|
|Income from operations||43,280|
|Income before income taxes||40,380|
|Income tax expense||8,180|
|1.||Depreciation expense is 15,060.|
|2.||Dividends declared and paid were $26,610.|
|3.||During the year equipment was sold for $9,780cash. This equipment cost $18,350 originally and had accumulated depreciation of $8,570 at the time of sale.|
(a) Prepare a statement of cash flows using the indirect method.