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As of January 1 Year 2. Room Designs Inc had a balance of $4,800 in Cash $2.650 in Common Stock, and 52.150 in Earnings. These
As of January 1 Year 2. Room Designs Inc had a balance of $4,800 in Cash $2.650 in Common Stock, and 52.150 in Earnings. These were the only accounts with balances in the ledger on January 1 Year 2. Further analysis of the company account indicated that during the Year 2 accounting period, the company had ti net cash inflow from operating net cash outflow for investing activities of $3.300, and (3) net cash inflow from financing activities of $70.300 Adrevenue and expense events were cash events. The following accounts and balances represent the general ledger of Room Designs Inc December 31 Year 2. before closing Assets Cash Bal. 7,950 ROCH DESIGNS, INC. General Ledger Liabilities Steckholders Founty Notes Payable Coon Stock Revenue Bal. 4,500 9.650 Ball 10,200 Land Bal 13,30 Retained Earnings Bal 2,150 Expenses Bal. 4,950 Dividends 1,200 Required a. Assume that the net cash inflow from financing activities of $10.300 was caused by three events. Based on the information 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
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