American Rare Coins (ARC) was formed on January 1, 2018. Additional data for the year follow: (Click the icon to view the data.) Read the requirements. Requirement 1. What is the purpose of the statement of cash flows? The purpose of the statement of cash flows is to show where cash came from and how cash was spent during the period. Requirement 2. Prepare ARC'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. American Rare Coins * More Info Income Statement Year Ended December 31, 2018 a. On January 1, 2018, ARC issued no par common stock for Revenue: $450,000. Sales Revenue b. Early in January, ARC made the following cash payments: Expenses: 1. For store fixtures, $53,000 Cost of Goods Sold 2. For merchandise inventory, $340,000 Salaries and Wages Expense 3. For rent expense on a store building, $20,000 c. Later in the year, ARC purchased merchandise inventory on Income Tax Expense account for $239,000. Before year-end, ARC paid $139,000 Depreciation Expense of this accounts payable. Rent Expense d. During 2018, ARC sold 2,400 units of merchandise inventory for $275 each. Before year-end, the company collected Total Expenses 85% of this amount. Cost of goods sold for the year was $250,000, and ending merchandise inventory totaled Net Income $329,000. e. The store employs three people. The combined annual payroll is $96,000, of which ARC still owes $3,000 at year-end. f. At the end of the year, ARC paid income tax of $17,000. There are no income taxes payable. g. Late in 2018, ARC paid cash dividends of $44,000. h. For store fixtures, ARC uses the straight-line depreciation method, over five years, with zero residual value. Print [ Done Accountants for Morganson, Inc. have assembled the following data for the year ended December 31, 2018: (Click the icon to view the current accounts.) B (Click the icon to view the transaction data.) Prepare Morganson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. Complete the statement one section at a time, beginning with the cash flows from operating activities. (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.) Morganson, Inc. Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Data Table 0 Data Table 2018 2017 Transaction Data for 2018: Issuance of common stock for cash Depreciation expense $ 46,100 50,000 $ 38,000 Payment of notes payable 24,000 Payment of cash dividends Issuance of notes payable to 74,000 borrow cash Net Cash Provided by (Used for) Operating Activities $ 99,400 $ 25,000 64,100 69,700 83,000 75,000 Current Assets: Cash Accounts Receivable Merchandise Inventory Current Liabilities: Accounts Payable Income Tax Payable 62,000 Purchase of equipment with cash Acquisition of land by issuing long- term notes payable Book value of building sold 119,000 Gain on sale of building 54,000 Net income 4,500 68,500 57,600 14,800 55,200 16,800 Print Done Print Done