As of January 1, Year 2, Room Designs, Incorporated had a balance of $5,200 in Cash, $2,850 in Common Stock, and $2,350 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, Year 2. Further analysis of the companys cash account indicated that during the Year 2 accounting period, the company had (1) net cash inflow from operating activities of $5,450, (2) net cash outflow for investing activities of $13,700, and (3) net cash inflow from financing activities of $13,900. All revenue and expense events were cash events. The following accounts and balances represent the financial condition of Room Designs, Incorporated as of December 31, Year 2, before closing.

Assets Cash Balance 10,850 Land Balance 13,700 ROOM DESIGNS INCORPORATED General Ledger Liabilities + Stockholders' Equity Notes Payable Common Stock Revenue Balance 6,500 Balance 11,850 Balance 10,600 Retained Earnings Expenses Balance 2,350 Balance 5,150 Dividends Balance 1,600 Assume that the net cash inflow from financing activities of $13,900 was caused by three events. Based on the given information, identify these events and determine the cash flow associated with each event. (Cash outflows should be indicated with a minus sign.) ROOM DESIGNS, INCORPORATED Cash flows from financing activities: Net cash flow from financing activities What did the company purchase that resulted in the cash outflow from investing activities? Net cash outflow for the Prepare an income statement for the year ended December 31, Year 2. ROOM DESIGNS, INCORPORATED Income Statement For the Year Ended December 31, Year 2 Prepare a statement of changes in stockholders' equity for the year ended December 31, Year 2. ROOM DESIGNS, INCORPORATED Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity Prepare a balance sheet as of December 31, Year 2. ROOM DESIGNS, INCORPORATED Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 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, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance