As of January 1, Year 2, Room Designs Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, Year 2. During the Year 2 accounting period, the company had (1) revenue of $18,100, (2) expenses of $8,300, and (3) dividends of $2,000. Assume that all transactions are cash transactions.
The following accounts and balances represent the financial condition of Room Designs Inc. as of December 31, Year 2.

Required
a. Determine the amount of net cash flow from operating activities.
b. What did the company purchase that resulted in the cash outflow from investing activities?
c. Assume that the net cash inflow from financing activities of $11,000 was caused by three events. Based on the earlier information, identify these events and determine the cash flow associated with each event.
d. Prepare a statement of cash flows.
e. Prepare an income statement, statement of changes in stockholders’ equity, and a balance sheet.

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ROOM DESIGNS INC. December 31, Year 2, Account Balances Acct. Titles for RE = Llabilities + Stockholders' Equity Assets Common Retalned Stock Notes Cash Earnings Land Payable Ending Bal. 14,200 16,500 14,200 9,000 7,500