As of January 1, Year 2, Room Designs, Inc. had a balance of $4,000 in Cash, $2,250 in Common Stock, and $1,750 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 $4,850, (2) net cash outflow for Investing activities of $14,500, and (3) net cash inflow from financing activities of $6,350. All revenue and expense events were cash events. The following accounts and balances represent the general ledger of Room Designs, Inc. as of December 31, Year 2, before closing. ROOM DESIGNS, INC. General Ledger Liabilities Stockholders' Equity Notes Payable Common Stock Revenue 2,500 Bal. 6,750 Bal. 9,40e Assets Cash Bal. 7ee + Bal. Land Bal. 14,500 Retained Earnings Bal. 1,750 Expenses Bal. 4,55 Dividends Bal. 650 Required a. Assume that the net cash Inflow from financing activities of $6,350 was caused by three events. Based on the information above, 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. Complete this question by entering your answers in the tabs below. Reg A ReqB ReqC1 Reg C2 Reg C3 Reg 04 Assume that the net cash inflow from financing activities of $6,350 was caused by three events. Based on the information above, identify these events and determine the cash flow associated with each event. (Cash outflows should be indicated with a minus sign.) ROOM DESIGNS, INC. Cash flows from financing activities Dash receipts from stock issue $ 4,500 Cash payments for dividends (650 Cash receipts from loan 2.500 et cash flow from financing activities $ 6,350 Complete this question by entering your answers in the tabs below. Req A Reg B Req ci Reg C2 Req C3 Reg C4 What did the company purchase that resulted in the cash outflow from investing activities? Wet cash outflow $ 14,500 for the purchase of land Complete this question by entering your answers in the tabs below. Req A Reg B Req c1 Reg C2 Reg C3 Reg C4 Prepare an income statement for the year ended December 31, Year 2. ROOM DESIGNS, INC. Income Statement For the Year Ended December 31, Year 2 Revenue $ Expenses (4,550) Net income 4,850 9.400 S Complete this question by entering your answers in the tabs below. Reg A Reg B Req ci Reg C2 Reg C3 Req C4 Prepare a statement of changes in stockholders' equity for the year ended December 31, Year 2. ROOM DESIGNS, INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock 2.250 Plus: Common stock issued 4,500 Ending common stock S 6,750 Beginning retained earnings 1,750 Plus: Net income 4,850 $ $ Ending retained earnings Total stockholders' equity 6,600 13,350 $ Complete this question by entering your answers in the tabs below. Reg A Reg B Reqci Reg C2 Reg C3 Reg 04 Prepare a balance sheet as of December 31, Year 2. ROOM DESIGNS, INC. Balance Sheet As of December 31, Year 2 Assets Cash $ 700 Land 14,500 $ 15 200 Total assets Liabilities Notes payable $ 2,500 $ 2.500 Total liabilities Stockholders' Equity Common stock Retained earnings 6,750 6,600 Total stockholders' equity Total liabilities and stockholders' equity 13,350 15,850 $ Complete this question by entering your answers in the tabs below. Req A ReqB Req c1 Reg C2 Reg C3 Req C4 Prepare a statement of cash flows for the year ended December 31, Year 2. (Cash outflows should be indicated with a minus sign.) ROOM DESIGNS, INC. Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: S 0 Net cash flow from operating activities Cash flows from investing activities: 0 Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance S
