Conwell Corporation began operations on January 1, 2007, as an online retailer of computer software and hardware. The following financial statement data were taken from Conwell’s records at the end of its first year of operations, December 31, 2007.
Accounts payable ............ $ 42,000
Accounts receivable ........... 67,200
Capital stock .............. 350,000
Cash ................. ?
Cash payments for operating activities ..... 980,000
Cash receipts from operating activities ..... 1,171,800
Cost of sales .............. 560,000
Dividends ............... 35,000
Income tax expense ........... 196,000
Income taxes payable ........... 28,000
Interest expense .............. 21,000
Inventories ................ $ 126,000
Note payable (due in 2015) ........ 140,000
Property, plant, and equipment ........ 529,200
Retained earnings ............. ?
Sales .................. 1,239,000
Selling and administrative expense ...... 147,000
Instructions
1. Prepare an income statement for the year ended December 31, 2007.
2. Prepare a retained earnings statement for the year ended December 31, 2007.
3. Prepare a balance sheet as of December 31, 2007.
4. Prepare a statement of cash flows for the year ended December 31, 2007.