Dazzling Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018: i (Click the icon to view the transactions.) Read the requirements. . Requirement 1. Prepare Dazzling's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. Dazzling Motors, Inc. Income Statement Year Ended December 31, 2018 * Requirements Revenue: Sales revenue 1. Prepare Dazzling's income statement for the year ended December 31, Expenses: 2018. Use the single-step format, with all revenues listed together and all Cost of goods sold expenses together. 2. Prepare Dazzling's balance sheet at December 31, 2018. Rent expense 3. Prepare Dazzling's statement of cash flows for the year ended December 31, Salary expense 2018. Format cash flows from operating activities using the indirect method. Depreciation expense Income tax expense * More Info Net income (loss) Requirement 2. Prepare Dazzling's balance sheet at December 31, 2018. Dazzling Motors, Inc. Balance Sheet December 31, 2018 Assets Liabilities Current assets: Current liabilities: On January 1, 2018, Dazzling issued its common stock for $430,000. Early January Dazzling made the following cash payments: a. $160,000 for equipment b. $234,000 for inventory (six cars at $39,000 each) c. $18,000 for 2018 rent on a store building In February, Dazzling purchased four cars for inventory on account. The cost of this inventory was $192,000 ($48,000 per car). Before year-end, the company paid off $57,600 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory During 2018, Dazzling sold seven autos for a total of $504,000. Before year-end, it had collected 70% of this amount. The business employs two people. The combined annual payroll is $60,000, of which Dazzling owes $2,000 at year-end. At the end of the year, the company paid income taxes of $22,000. Late in 2018, Dazzling declared and paid cash dividends of $14,000. For equipment, Dazzling uses the straight-line depreciation method, over five years, with zero residual value. Stockholders' equity Property, plant, and equipment: Print Done Less: Requirement 3. Prepare Dazzling's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash. Enter "O" for zero balances.) Dazzling Motors, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 , Cash flows from operating activities: : Adjustments to reconcile net income to Dazzling Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018: i (Click the icon to view the transactions.) Read the fequirements DELE VEJ, VTO Assets Liabilities Current liabilities: Current assets: Stockholders' equity Property, plant, and equipment: Less Requirement 3. Prepare Dazzling's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash. Enter "O" for zero balances.) Dazzling Motors, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided (used for) operating activities: Net cash provided by used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by used for) financing activities Net increase (decrease) in cash
