Exercise P1-4

Chapter 1 The Role of Accounting in Business 39 Instructions 1. Prepare Target's income statement for the year ending January 31 2. Prepare Target's statement of stockholders' equity for the year ending January 31. Use the following additional information for the year: No common stock was issue during the year Retained earnings Feb. 1 of prior year Dividends Other stockholder equity items on Feb. 1 of prior year Increase in other stockholder equity items 12,599 1,319 3,579 721 3. Prepare a balance sheet as of January 31. P1-4 Statement of cash flows obj.4 The following cash data for the year ended December 31 were adapted from a recent an- nual report of Alphabet (G00G), formerly known as Google. The cash balance as of January 1 was $18,347 (in millions). Net decrease in cash, s(1,798) In millions Payments on debt Purchases of property, plant, and equipment Purchases of investments (marketable securities Cash flows from operating activities 5 4,111 9,915 13,796 26,024 Instructions Prepare Alphabet's statement of cash flows for the year ended December 31 P1-5 Financial statements, including statement of cash flows obj.4 Pendray Systems Corporation began operations on January 1, 20Y5 as an online retailer of computer software and hardware. The following financial statement data were taken from Pendray's records at the end of its first year of operations, December 31, 20Y5. Accounts payable Accounts receivable Cash Cash payments for operating activities Cash receipts from operating activities Common stock Cost of sales Dividends Income tax expense Income taxes payable Interest expense Inventories Note payable (due in ten years) Property, plant, and equipment Retained earnings Sales Selling and administrative expenses $ 40,000 88,000 V1. Net income, $335,000 896,000 1,087,000 120,000 650,000 90,000 87,000 5,000 3,000 111,000 80,000 265,000 1,175,000 100,000 Instructions 1. Prepare an income statement for the year ended December 31, 20Y5. 2. Prepare a statement of stockholders' equity for the year ended December 31, 20Y5. 3. Prepare a balance sheet as of December 31, 20Y5. 4. Prepare a statement of cash flows for the year ended December 31, 20Y5