As of January $1,$ Year $2,$ Room Designs, Incorporated had a balance of $$5,000$ in Cash; $$2,750$ in Common Stock, and $$2,250$ in Retained Earnings. These were the only accounts with balances in the ledger on January $1,$ Year $2.$ Further analysis of the company$$s cash account indicated that during the Year $2$ accounting period, the company had $(1)$ net cash inflow from operating activities of $$5,350$; $(2)$ net cash outflow for investing activities of $$13,500$; and $(3)$ net cash inflow from financing activities of $$12,100.$ All revenue and expense events were cash events. The following accounts and balances represent the general ledger of Room Designs, Incorporated as of December $31,$ Year $2,$ before closing.

ROOM DESIGNS, INCORPORATED

General Ledger

Assets $=$ Liabilities $+$ Stocholders$$ Equity

Cash Notes Payable Common Stock Revenue

Balance $8,950$ Balance $5,500$ Balance $10,750$ Balance $10,400$

Land Retained Earnings Expenses

Balance $13,500$ Balance $2,250$ Balance $5,050$

Dividends

Balance $1,400$

Required

a$.$ Assume that the net cash inflow from financing activities of $$12,100$ was caused by three events. Based on the information given, identify these events and determine the cash flow associated with each event.

b$.$ What did the company purchase that resulted in the cash outflow from investing activities?

c$-1.$ Prepare an income statement for the year ended December $31,$ Year $2.$

c$-2.$ Prepare a statement of changes in stockholders$$ equity for the year ended December $31,$ Year $2.$

c$-3.$ Prepare a balance sheet as of December $31,$ Year $2.$

c$-4.$ Prepare a statement of cash flows for the year ended December $31,$ Year $2.$