Background Information: a) Donald Duck and Friends started when they issued 3,000 shares of $8par value stock on January 1,2018 b) The stock issued at a market price of $13 per share c) During the year, Donald Duck and Friends had revenue of $43,000 d) Donald Duck and Friends paid cash for $18,000 in expenses e) Donald Duck and Friends paid a cash Dividend of $25,000 a) Prepare income statement for 2018 Donald Duck and Friends Income Statement For the Year Ended December 31,2018 Revenue Hint: This is from transaction C Expense Hint: This is from Transaction D Net Income $25,000 b) Prepare year-end balance Sheet Donald Duck and Friends Balance Sheet As of December 31,2018 Assets Cash Total Assets $39,000 Liabilities Total Liabilities Stockholders Equity Common Stock Hint: This is from Transaction A Paid-in Capital in Excess of Par Hint: This is from Transaction B Total Paid-Capital $39,000 Retained Earnings Total Liabilities and Stockholders Equity $39,000 C) Prepare the statement of cash flows Donald and Friends Statement of Cash Flows As of December 31,2018 Cash flows from operating Activities Cash Receipt from Revenue Paid for Expenses Net Cash flow from operating Activities $25,000 Cash flows from investing activities Cash flows from financing activities Proceeds from issue of stock Paid for Dividends Net Cash flow from financing activities Net Change in Cash Plus: Beginning Cash Balance Ending Cash Balance $39,000 d) Prepare the Statement of Changes in Stockholders Equity Donald and Friends Statement of Changes in Stockholders Equity For the Year Ended December 31,2018 Beginning Common Stock Plus: Issuance of Common Stock Ending Common Stock $39,000 Beginning Retained Earnings Plus: Net Income Less: Dividend Ending Retained earnings Total Stockholders Equity $39,000