a. On January 1, 2024, ARRC issued no par common stock for $550,000. b. Early in January, ARRC made the following cash payments: 1. For store fixtures, $45,000 2. For merchandise inventory, $270,000 3. For rent expense on a store building, $18,000 c. Later in the year, ARRC purchased merchandise inventory on account for $245,000. Before year-end, ARRC paid $155,000 of this accounts payable. d. During 2024, ARRC sold 2,100 units of merchandise inventory for $350 each. Before year-end, the company collected 85% of this amount. Cost of goods sold for the year was $280,000, and ending merchandise inventory totaled $235,000. e. The store employs three people. The combined annual payroll is $92,000, of which ARRC still owes $2,000 at year-end. f. At the end of the year, ARRC paid income tax of $23,000. There are no income taxes payable. g. Late in 2024, ARRC paid cash dividends of $39,000. h. For store fixtures, ARRC 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 ARRC's income statement for the year ended December 31, 2024. Use the single-step format, with all revenues listed together and all expenses listed together. Revenue: American Reserve Rare Coins Income Statement Year Ended December 31, 2024 Expenses: Total Expenses Net Income Requirement 3. Prepare ARRC's balance sheet at December 31, 2024. American Reserve Rare Coins Balance Sheet December 31, 2024 Assets Current Assets: Total Current Assets Property, Plant, and Equipment: Total Assets Liabilities Current Liabilities: Total Current Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Requirement 4. Prepare ARRC's statement of cash flows using the indirect method for the year ended December 31, 2024. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero. Enter "0" for a zero cash balance.) Complete the statement one section at a time, beginning with the cash flows from operating activities. American Reserve Rare Coins Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash 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, 2023 Cash Balance, December 31, 2024