6 Part 2 of 6 Required information Exercise 8-7A Effect of depreciation on the accounting equation and financial statements LO 8-2 (The following information applies to the questions displayed below.) 0.5 points The following events apply to Gulf Seafood for the Year 1 fiscal year: eBook Hint 1. The company started when it acquired $60,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $40,000 cash. 3. Earned $72,000 in cash revenue. 4. Paid $25,000 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $4,000. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Print Exercise 8-7A Part b b. Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. (Amounts to be deducted should be indicated by a minus sign.) Exercise 8-7A Part b . Prepare a balance sheet and a statement of cash flows for the Year 1 accounting period. (Amounts to be deducted should be ndicated by a minus sign.) GULF SEAFOOD Balance Sheet As of December 31, Year 1 Assets Total Assets Liabilities Stockholders' equity Total stockholder's equity Total liabilities and stockholders' equity GULF SEAFOOD Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash Ending cash balance