As of January 1, Year 2, Shundra Inc. had a balance of $4,500 in Cash, $2,500 in Common Stock, and $2,000 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, Year 2. During Year 2, the company had 

(1) revenue of $9,900, 

(2) expenses of $4,800, 

(3) dividends of $900. 

Assume that all transactions are cash transactions. The following accounts and balances represent the financial condition of Shundra 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 $7,600 was caused by three events. Based on the information presented, 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 balance sheet.

Transcribed Image Text:

SHUNDRA INC. December 31, Year 2, Account Balances Acct. Titles for RE = Llabilitles Notes Payable + Stockholders' Equity Common Retalned Event No. Assets Land Earnings Stock Cash 6,200 Ending Bal. 4,200 13,000 3,000 8,000