A new company began with $50,000 in cash and common stock. It bought 100 phones for $500 each and resold 95 of them for $600 each. Ignore taxes. For statement of cash flows, refer to PowerPoints of Chapter 21 if Chapter 4 does not provide enough guidance.

a. Record the journal entry to purchase the inventory (Inventory, Cash).

b. Record the sale of inventory (Cash, Sales Revenue; Cost of Goods Sold, Inventory)

c. Prepare a T-account to show cash balance.

d. Prepare a T-account to show inventory balance.

e. Prepare an income statement

f. Prepare a balance sheet

g. Prepare a direct statement of cash flows.

h. Prepare an indirect statement of cash flows