2001/1/1

1. shares issued to 100,000: $0.60 ordinary shares for $0.60 each

2. bank loan obtained: $80,000 (together with the shares issued deposited in the bank)

3. equipment purchsed: $20,000 cash. Inventories of desks: $50,000 from suppliers on credit

4. depreciation of equipments (straight line) over 10 years. By the end of 2001 still owed trade suppliers $1,000 for desks purchased.

5. Purchased van: $10,000 cash, which is to be depreciated (reducing balance) over 5 years. Rent: $9,000 in cash for 18 month

6. Sold on credit for $260,000, with 80% of the desks purchased. At the end of 2001 the credit customers owed $135,000.

7. Wages paid: $30,000. Received bills for administration fees total $10,000 and paid $6,000

8. Paid bank loan interest: $8,000 and received a tax bill, to be paid next year, of $5,000.

9. on the last day of 2001, the company paid the total dividend of $18,000

10. value of each share on the last day of 2001: $0.80

Q. construct the cash flow statement/balance sheet/income statement for this company sith steps