a. On January 1, 2018, MRRC issued no par common stock for $400,000. b. Early in January, MRRC made the following cash payments: 1. For store fixtures, $46,000 2. For merchandise inventory, $300,000 3. For rent expense on a store building, $14,000 Later in the year, MRRC purchased merchandise inventory on account for $240,000. Before year-end, MRRC paid $160,000 of this accounts payable. During 2018, MRRC sold 2,100 units of merchandise inventory for $400 each. Before year-end, the company collected 85% of this amount. Cost of goods sold for the year was $340,000, and ending merchandise inventory totaled $200,000. c. d. e. The store employs three people. The combined annual payroll is $94,000, of which f. At the end of the year, MRRC paid income tax of $20,000. There are no income g. Late in 2018, MRRC paid cash dividends of $39,000. MRRC still owes $5,000 at year-end. taxes payable. h. For store fixtures, MRRC uses the straight-line depreciation method, over five years, with zero residual value. Requirement 1. What is the purpose of the statement of cash flows? The purpose of the statement of cash flows is Requirement 2. Prepare MRRC's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together. Midwestern Reserve Rare Coins Income Statement Year Ended December 31, 2018 Revenue Expenses: Total Expenses Net Income Requirement 3. Prepare MRRC's balance sheet at December 31, 2018. Midwestern Reserve Rare Coins Balance Sheet December 31, 2018 Assets Liabilities Current Assets Current Liabilities Total Current Liabilities Total Current Assets Stockholders' Equity Property, Plant, and Equipment: Total Stockholders' Equity Total Assets Total Liabilities and Stockholders' Equity Requirement 4, Prepare MRRC's statement of cash flows using the indirect ethod for the year ended December 31, 2018Use a minus sign or parentheses for a ounts that result in a decrease in cash. If a box is not used in the stateme leave the box empty: do not select a label or enter a zero. Enter "O" for a zero cash balance.) Complete the statement one section at a time, beginning with the cash flows from operating activities. Midwestern Reserve Rare Coins Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities : Net Income Adjustments to Reconcile Net Income to Net Caslh Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities Cash Flows from Investing Activities: Net Cash Provided by (Used for) Investing Activities Cash Flows from Financing Activities: Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, December 31, 2017 Cash Balance, December 31, 2018